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The Dynamics of Health, Employment and Working Hours

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  • Thierry Kamionka

    (CNRS - Centre National de la Recherche Scientifique, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, IP Paris - Institut Polytechnique de Paris)

  • Pauline Leveneur

    (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, IP Paris - Institut Polytechnique de Paris)

Abstract

We investigate interactions between individual's position in the labor market and health status. We jointly model health, employment and working hours using a dynamic model. We estimate a dynamic multivariate model with random effects for the period going from 1991 to 2009 and using data from the British Household Panel Survey (BHPS). Instrumental variables are used. We consider interactions of the error terms of the model using a vector autoregressive process of the order 1. A shock on one component of the error term can have an impact on the distribution of the error term the next period of time. Individual effects-one for each equation-can be correlated. The model is estimated using simulated maximum likelihood estimator. We consider the initial conditions problem. We find that joint dynamics of health and employment is determined by the interactions of their past realizations as well as by the individual's socioeconomic characteristics.

Suggested Citation

  • Thierry Kamionka & Pauline Leveneur, 2021. "The Dynamics of Health, Employment and Working Hours," Working Papers hal-03307591, HAL.
    • Handle: RePEc:hal:wpaper:hal-03307591
    Note: View the original document on HAL open archive server: https://hal.science/hal-03307591v1
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    References listed on IDEAS

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