Health Status and Labour Force Participation: Evidence from the HILDA Data
Although the overseas literature on the effect of health on labour force participation is extensive, especially in the US, the literature in an Australian context is scarce. This paper contributes to the understanding of this issue using the recently released Household, Income and Labour Dynamics in Australia (HILDA) Survey data. The potential endogeneity of the health variables, especially self-assessed health, in the labour force participation equation is addressed by estimating the health equation and the labour force participation equation simultaneously. We also take into account the correlation between the error terms in the two equations to obtain an efficient result. The null-hypothesis of exogeneity of health to labour force participation is tested based on a test of the joint significance of the labour force participation variable in the health equation and the correlation coefficient of the two error terms.
|Date of creation:||Mar 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
Web page: http://www.melbourneinstitute.com/
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.:
- 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.
- Parsons, Donald O, 1982. "The Male Labour Force Participation Decision: Health, Reported Health, and Economic Incentives," Economica, London School of Economics and Political Science, vol. 49(193), pages 81-91, February.
- Paul Taubman & Sherwin Rosen, 1982.
"Healthiness, Education, and Marital Status,"
in: Economic Aspects of Health, pages 121-140
National Bureau of Economic Research, Inc.
- John Bound & Michael Schoenbaum & Timothy Waidmann, 1995. "Race and Education Differences in Disability Status and Labor Force Attachment," NBER Working Papers 5159, National Bureau of Economic Research, Inc.
- Robert Haveman & Mark Stone & Barbara Wolfe, 1989.
"Market Work, Wages, and Men's Health,"
NBER Working Papers
3020, National Bureau of Economic Research, Inc.
- Gloria J. Bazzoli, 1985. "The Early Retirement Decision: New Empirical Evidence on the Influence of Health," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 214-234.
- Campolieti, Michele, 2002. "Disability and the labor force participation of older men in Canada," Labour Economics, Elsevier, vol. 9(3), pages 405-432, July.
- Janet Currie & Brigitte C. Madrian, 1998.
"Health, Health Insurance and the Labor Market,"
JCPR Working Papers
27, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Lee, Lung-Fei, 1982. "Health and Wage: A Simultaneous Equation Model with Multiple Discrete Indicators," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(1), pages 199-221, February.
- Megan Beckett & Marc N. Elliott, 2002. "Does the Association Between Marital Status and Health Vary by Sex, Race, and Ethnicity?," Working Papers 02-08, RAND Corporation Publications Department.
- 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.
- Chirikos, Thomas N & Nestel, Gilbert, 1985. "Further Evidence on the Economic Effects of Poor Health," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 61-69, February.
- Sickles, Robin C & Taubman, Paul, 1986.
"An Analysis of the Health and Retirement Status of the Elderly,"
Econometric Society, vol. 54(6), pages 1339-56, November.
- Robin C. Sickles & Paul J. Taubman, 1984. "An Analysis of the Health and Retirement Status of the Elderly," NBER Working Papers 1459, National Bureau of Economic Research, Inc.
- Debra Sabatini Dwyer & Olivia S. Mitchell, 1998.
"Health Problems as Determinants of Retirement: Are Self-Rated Measures Endogenous?,"
NBER Working Papers
6503, National Bureau of Economic Research, Inc.
- Dwyer, Debra Sabatini & Mitchell, Olivia S., 1999. "Health problems as determinants of retirement: Are self-rated measures endogenous?," Journal of Health Economics, Elsevier, vol. 18(2), pages 173-193, April.
- Debra S. Dwyer & Olivia S. Mitchell, . "Health Problems as Determinants of Retirement: Are Self-Rated Measures Endogenous?," Pension Research Council Working Papers 98-7, Wharton School Pension Research Council, University of Pennsylvania.
- Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
- Roger Wilkins, 2003. "Labour Market Outcomes and Welfare Dependence of Persons with Disabilities in Australia," Melbourne Institute Working Paper Series wp2003n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Anderson, Kathryn H. & Burkhauser, Richard V., 1984. "The importance of the measure of health in empirical estimates of the labor supply of older men," Economics Letters, Elsevier, vol. 16(3-4), pages 375-380.
- Kenkel, D.S., 1989. "Should You Eat Breakfast? Estimates From Health Production Functions," Papers 9-90-8, Pennsylvania State - Department of Economics.
- Richard Brazenor, 2002. "Disabilities and labour Market earnings in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 5(3), pages 319-334, September.
- Mark Wooden & Simon Freidin & Nicole Watson, 2002. "The Household, Income and Labour Dynamics in Australia (HILDA)Survey: Wave 1," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 35(3), pages 339-348.
- Haveman, Robert & Wolfe, Barbara & Warlick, Jennifer, 1988. "Labor market behavior of older men : Estimates from a Trichotomous choice model," Journal of Public Economics, Elsevier, vol. 36(2), pages 153-175, July.
When requesting a correction, please mention this item's handle: RePEc:iae:iaewps:wp2004n04. 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: (James Davis)
If references are entirely missing, you can add them using this form.