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Health impairments and labour market outcomes

  • Nick Drydakis

    ()

    (Department of Economics - University of Crete, Greece)

Our analysis is based on the 2008 Athens Area Study and exploits detailed information regarding health impairments and labour market outcomes for Greek males. Distinguishing between healthy and heath-impaired employees who have or do not have work limitations, the unobserved productivity effect of health is separated from discrimination. We then estimate a regression model that includes terms to correct for employment selection and endogenous stratification of self-reported health condition. A penalty for productivity limitation exists. Evidence of wage discrimination is also found. Both findings are statistically significant and highlight the necessity for instituting active policies against unequal treatment.

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Paper provided by University of Crete, Department of Economics in its series Working Papers with number 0915.

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Publication status: Published in European Journal of Health Economics
Handle: RePEc:crt:wpaper:0915
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  1. Michael P. Kidd & Peter J. Sloane & Ivan Ferko, 1998. "Disability and the Labour Market: an analysis of British males," Working Papers 98-10, Department of Economics, University of Aberdeen.
  2. John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
  3. Marjorie L. Baldwin & William G. Johnson, . "Labor Market Discrimination Against Men with Disabilities in the Year of the ADA," Working Papers 9715, East Carolina University, Department of Economics.
  4. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
  5. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  6. Dhaval Dave & R. Inas Rashad & Jasmina Spasojevic, 2008. "The Effects of Retirement on Physical and Mental Health Outcomes," Southern Economic Journal, Southern Economic Association, vol. 75(2), pages 497-523, October.
  7. Steven Stern, 1989. "Measuring the Effect of Disability on Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 361-395.
  8. Marjorie Baldwin & William G. Johnson, 1994. "Labor Market Discrimination against Men with Disabilities," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 1-19.
  9. Zhang, Xiaohui & Zhao, Xueyan & Harris, Anthony, 2009. "Chronic diseases and labour force participation in Australia," Journal of Health Economics, Elsevier, vol. 28(1), pages 91-108, January.
  10. Lee, Lung-fei & Maddala, G S & Trost, R P, 1980. "Asymptotic Covariance Matrices of Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equations Models with Selectivity," Econometrica, Econometric Society, vol. 48(2), pages 491-503, March.
  11. Kreider, Brent, 1999. "Latent Work Disability and Reporting Bias," Staff General Research Papers 5185, Iowa State University, Department of Economics.
  12. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
  13. Kevin Hollenbeck & Jean Kimmel, 2008. "Differences in the Returns to Education for Males by Disability Status and Age of Disability Onset," Southern Economic Journal, Southern Economic Association, vol. 74(3), pages 707-724, January.
  14. William G. Johnson & James Lambrinos, 1985. "Wage Discrimination against Handicapped Men and Women," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 264-277.
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