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Employment propensity: The roles of mental and physical health

  • Gail Pacheco


    (Department of Economics, Auckland University of Technology)

  • Don J. Webber

This paper presents an investigation into the impacts of mental and physical health on the propensity to be employed. Health status is parameterised using three physical and three mental health indicators. After controlling for various socioeconomic factors, the application of limited dependent variable regression techniques generates results which indicate that activity-limiting physical health and accomplishment-limiting mental health issues significantly affect the propensity to be employed. Further investigations reveal gender and ethnicity divides and that health is exogenous to employment status.

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Paper provided by Auckland University of Technology, Department of Economics in its series Working Papers with number 2011-01.

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Length: 31 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:aut:wpaper:201101
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  1. Moscone, Francesco & Knapp, Martin & Tosetti, Elisa, 2007. "Mental health expenditure in England: A spatial panel approach," Journal of Health Economics, Elsevier, vol. 26(4), pages 842-864, July.
  2. Lixin Cai, 2009. "Effects of Health on Wages of Australian Men," The Economic Record, The Economic Society of Australia, vol. 85(270), pages 290-306, 09.
  3. Anson, Ofra & Paran, Esther & Neumann, Lily & Chernichovsky, Dov, 1993. "Gender differences in health perceptions and their predictors," Social Science & Medicine, Elsevier, vol. 36(4), pages 419-427, February.
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