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Dynamics in Physical Functioning Limitations

Author

Listed:
  • Agarwal, Neha

    () (University of California, Riverside)

  • Kohler, Hans-Peter

    () (University of Pennsylvania)

  • Mani, Subha

    () (Fordham University)

Abstract

The extent to which physical functioning limitations result in permanent job loss, lowered lifetime income and assets, in part, depends upon the extent to which onset of these limitations becomes permanent. This paper uses five rounds of data from Malawi to examine path dependence in physical functioning limitations. We do so using a dynamic linear panel data model where the coefficient on the one-period lagged health outcome captures path dependence in functional limitations. Our preferred estimates indicate – (a) partial recovery from onset of functional limitations for males, (b) there is less recovery in severe limitations than moderate limitations for males, (c) perfect recovery from both moderate and severe functional limitation for females.

Suggested Citation

  • Agarwal, Neha & Kohler, Hans-Peter & Mani, Subha, 2017. "Dynamics in Physical Functioning Limitations," IZA Discussion Papers 11101, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11101
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    References listed on IDEAS

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    1. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    2. Mizunoya, Suguru & Mitra, Sophie, 2013. "Is There a Disability Gap in Employment Rates in Developing Countries?," World Development, Elsevier, vol. 42(C), pages 28-43.
    3. Paul Gertler & Jonathan Gruber, 2002. "Insuring Consumption Against Illness," American Economic Review, American Economic Association, vol. 92(1), pages 51-70, March.
    4. Mani, Subha & Mitra, Sophie & Sambamoorthi, Usha, 2018. "Dynamics in health and employment: Evidence from Indonesia," World Development, Elsevier, vol. 104(C), pages 297-309.
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    More about this item

    Keywords

    activity of daily living; functional limitation; panel data; Malawi;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I10 - Health, Education, and Welfare - - Health - - - General

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