Dynamics of Poor Health and Non-employment
While there is little doubt that the probability of poor health increases with age, and that less healthy people face a more difficult situation on the labour market, the precise relationship between facing the risks of health deterioration and labour market instability is not well understood. Using twelve years of data from the German Socio-Economic Panel we study the nature of the relationship between poor health and non-employment on a sample of German men aged 30-59. We propose to model poor health and non-employment as interrelated risks determined within a dynamic structure conditional on a set of individual characteristics. Applying dynamic panel estimation we identify the mechanism through which poor health contributes to the probability of being jobless and vice versa. We find an important role of unobserved heterogeneity and evidence for correlation in the unobservable characteristics determining the two processes. The results also show strong persistence in the dynamics of poor health and non-employment.
|Date of creation:||2009|
|Contact details of provider:|| Postal: Mohrenstraße 58, D-10117 Berlin|
Web page: http://www.diw.de/en/soep
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Manton, Kenneth G & Stallard, Eric & Corder, Larry, 1998. "Economic Effects of Reducing Disability," American Economic Review, American Economic Association, vol. 88(2), pages 101-105, May.
- Richard Blundell & Costas Meghir & Sarah Smith, 2002. "Pension Incentives and the Pattern of Early Retirement," Economic Journal, Royal Economic Society, vol. 112(478), pages 153-170, March.
- Hugo Benitez-Silva & Huan Ni, 2007.
"Health Status and Health Dynamics in an Empirical Model of Expected Longevity,"
Department of Economics Working Papers
07-04, Stony Brook University, Department of Economics.
- Benitez-Silva, Hugo & Ni, Huan, 2008. "Health status and health dynamics in an empirical model of expected longevity," Journal of Health Economics, Elsevier, vol. 27(3), pages 564-584, May.
- Hugo Benitez-Silva & Huan Ni, 2005. "Health Status and Health Dynamics in an Empirical Model of Expected Longevity," Department of Economics Working Papers 05-14, Stony Brook University, Department of Economics.
- Peter Adams & Michael D. Hurd & Daniel L. McFadden & Angela Merrill & Tiago Ribeiro, 2004.
"Healthy, Wealthy, and Wise? Tests for Direct Causal Paths between Health and Socioeconomic Status,"
in: Perspectives on the Economics of Aging, pages 415-526
National Bureau of Economic Research, Inc.
- Adams, Peter & Hurd, Michael D. & McFadden, Daniel & Merrill, Angela & Ribeiro, Tiago, 2003. "Healthy, wealthy, and wise? Tests for direct causal paths between health and socioeconomic status," Journal of Econometrics, Elsevier, vol. 112(1), pages 3-56, January.
- Kuhn, Peter & Sweetman, Arthur, 1999.
"Vulnerable Seniors: Unions, Tenure, and Wages Following Permanent Job Loss,"
Journal of Labor Economics,
University of Chicago Press, vol. 17(4), pages 671-693, October.
- Peter Kuhn & Arthur Sweetman, "undated". "Vulnerable Seniors: Unions, Tenure and Wages Following Permanent Job Loss," Canadian International Labour Network Working Papers 20, McMaster University.
- Alessie, R.J.M. & Hochgürtel, S. & van Soest, A.H.O., 2004.
"Ownership of stocks and mutual funds : A panel data analysis,"
Other publications TiSEM
471d7c77-905c-4d47-84b9-d, Tilburg University, School of Economics and Management.
- Rob Alessie & Stefan Hochguertel & Arthur van Soest, 2004. "Ownership of Stocks and Mutual Funds: A Panel Data Analysis," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 783-796, August.
- Alessie, Rob & Stefan Hochguertel & Arthur van Soest, 2002. "Ownership of Stocks and Mutual Funds: A Panel Data Analysis," Royal Economic Society Annual Conference 2002 3, Royal Economic Society.
- Alessie, R.J.M. & Hochgürtel, S. & van Soest, A.H.O., 2001. "Ownership of Stocks and Mutual Funds : A Panel Data Analysis," Discussion Paper 2001-94, Tilburg University, Center for Economic Research.
- Raquel Carrasco, 1999.
"Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labour Participation,"
1999.3, Fondazione Eni Enrico Mattei.
- Carrasco, Raquel, 2001. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labor Participation," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 385-394, October.
- Carrasco, R., 1998. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labour Participation," Papers 9805, Centro de Estudios Monetarios Y Financieros-.
- Jonathan Gruber, 2000.
"Disability Insurance Benefits and Labor Supply,"
Journal of Political Economy,
University of Chicago Press, vol. 108(6), pages 1162-1183, December.
- Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
- R. T. Riphahn, 1999. "Disability Retirement among German Men in the 1980s," ILR Review, Cornell University, ILR School, vol. 52(4), pages 628-647, July.
- H. Shelton Brown & José A. Pagán & Elena Bastida, 2005. "The impact of diabetes on employment: genetic IVs in a bivariate probit," Health Economics, John Wiley & Sons, Ltd., vol. 14(5), pages 537-544.
- Pierre-Carl Michaud & Konstantinos Tatsiramos, 2008.
"Fertility and Female Employment Dynamics in Europe: The Effect of Using Alternative Econometric Modeling Assumptions,"
643, RAND Corporation.
- Pierre‐Carl Michaud & Konstantinos Tatsiramos, 2011. "Fertility and female employment dynamics in Europe: the effect of using alternative econometric modeling assumptions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(4), pages 641-668, 06.
- Michaud, Pierre-Carl & Tatsiramos, Konstantinos, 2008. "Fertility and Female Employment Dynamics in Europe: The Effect of Using Alternative Econometric Modeling Assumptions," IZA Discussion Papers 3853, Institute for the Study of Labor (IZA).
- Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April.
- Akay, Alpaslan, 2009. "The Wooldridge Method for the Initial Values Problem Is Simple: What About Performance?," IZA Discussion Papers 3943, Institute for the Study of Labor (IZA).
- Dean R. Hyslop, 1999. "State Dependence, Serial Correlation and Heterogeneity in Intertemporal Labor Force Participation of Married Women," Econometrica, Econometric Society, vol. 67(6), pages 1255-1294, November.
- Bratberg, E., 1999.
"Disability Retirement in a Welfare State,"
Norway; Department of Economics, University of Bergen
190, Department of Economics, University of Bergen.
- Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-659, May.
- Adriaan Kalwij & Frederic Vermeulen, 2008. "Health and labour force participation of older people in Europe: What do objective health indicators add to the analysis?," Health Economics, John Wiley & Sons, Ltd., vol. 17(5), pages 619-638.
When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp195. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek)
If references are entirely missing, you can add them using this form.