IDEAS home Printed from https://ideas.repec.org/p/jku/econwp/2018_11.html
   My bibliography  Save this paper

The growing American health penalty: International trends in the employment of older workers with poor health

Author

Listed:
  • Ben Baumberg Geiger
  • René Böheim
  • Thomas Leoni

Abstract

Many countries have reduced the generosity of disability benefits while making them more activating – yet few studies have examined how employment rates have subsequently changed. We present estimates of how the employment rates of older workers with poor health in 13 high-income countries changed between 2004-7 and 2012-15 using HRS/SHARE/ELSA data. We find that those in poor health in the USA have experienced a unique deterioration: they have not only seen a widening gap to the employment rates of those with good health, but their employment rates fell per se. We find only for Sweden (and possibly England) signs that the health employment gap shrank. We then examine possible explanations for the development in the USA: we find no evidence it links to labour market trends, but possible links to the USA’s lack of disability benefit reform – which should be considered alongside the wider challenges of our findings for policymakers.

Suggested Citation

  • Ben Baumberg Geiger & René Böheim & Thomas Leoni, 2018. "The growing American health penalty: International trends in the employment of older workers with poor health," Economics working papers 2018-11, Department of Economics, Johannes Kepler University Linz, Austria.
  • Handle: RePEc:jku:econwp:2018_11
    Note: PDF Document
    as

    Download full text from publisher

    File URL: http://www.econ.jku.at/papers/2018/wp1811.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Philip de Jong & Maarten Lindeboom & Bas van der Klaauw, 2011. "Screening Disability Insurance Applications," Journal of the European Economic Association, European Economic Association, vol. 9(1), pages 106-129, February.
    2. Hugo Benítez-Silva & Richard Disney & Sergi Jiménez-Martín, 2010. "Disability, capacity for work and the business cycle: an international perspective," Economic Policy, CEPR;CES;MSH, vol. 25, pages 483-536, July.
    3. Baumberg, Ben & Jones, Melanie & Wass, Victoria, 2015. "Disability prevalence and disability-related employment gaps in the UK 1998–2012: Different trends in different surveys?," Social Science & Medicine, Elsevier, vol. 141(C), pages 72-81.
    4. Richard Burkhauser & Mary Daly & Duncan McVicar & Roger Wilkins, 2014. "Disability benefit growth and disability reform in the US: lessons from other OECD nations," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-30, December.
    5. James Poterba & Steven Venti & David A. Wise, 2013. "Health, Education, and the Postretirement Evolution of Household Assets," Journal of Human Capital, University of Chicago Press, vol. 7(4), pages 297-339.
    6. Trevisan, Elisabetta & Zantomio, Francesca, 2016. "The impact of acute health shocks on the labour supply of older workers: Evidence from sixteen European countries," Labour Economics, Elsevier, vol. 43(C), pages 171-185.
    7. Erosa, Andrés & Fuster, Luisa & Kambourov, Gueorgui, 2012. "Labor supply and government programs: A cross-country analysis," Journal of Monetary Economics, Elsevier, vol. 59(1), pages 84-107.
    8. Staubli, Stefan, 2011. "The impact of stricter criteria for disability insurance on labor force participation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1223-1235, October.
    9. repec:nbr:nberbk:wise-22 is not listed on IDEAS
    10. repec:aph:ajpbhl:10.2105/ajph.2008.139469_1 is not listed on IDEAS
    11. James Banks & James P. Smith, 2012. "International Comparisons in Health Economics: Evidence from Aging Studies," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 57-81, July.
    12. Viola Angelini & Danilo Cavapozzi & Omar Paccagnella, 2011. "Dynamics of reporting work disability in Europe," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(3), pages 621-638, July.
    13. Jones, Melanie K., 2006. "Is there employment discrimination against the disabled?," Economics Letters, Elsevier, vol. 92(1), pages 32-37, July.
    14. repec:wfo:wstudy:50914 is not listed on IDEAS
    15. Ottar Hellevik, 2009. "Linear versus logistic regression when the dependent variable is a dichotomy," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(1), pages 59-74, January.
    16. 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.
    17. Melanie K. Jones, 2007. "Does Part-Time Employment Provide A Way Of Accommodating A Disability?," Manchester School, University of Manchester, vol. 75(6), pages 695-716, December.
    18. Gina A. Livermore & Todd C. Honeycutt, 2015. "Employment and Economic Well-Being of People With and Without Disabilities Before and After the Great Recession," Mathematica Policy Research Reports 02b02f58aa654eac8253dd5a2, Mathematica Policy Research.
    19. Lee, Jinkook & Zamarro, Gema, 2011. "Harmonization of Cross-National Studies of Aging to the Health and Retirement Study: Employment and Retirement Measures," Working Papers 861/4, RAND Corporation.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    disability benefits; older workers; poor health; HRS/ SHARE/ELSA data;

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jku:econwp:2018_11. 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: (René Böheim). General contact details of provider: http://edirc.repec.org/data/vlinzat.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.