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Disability and Labour Force Participation in Ireland 1995-2000

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  • Brenda Gannon

    () (Economic and Social Research Institute and National University of Ireland, Maynooth)

Abstract

This paper aims to analyse the effect of disability on participation in the labour force, using the Irish component of the European Community Household Panel Survey 1995-2000. A range of panel models are considered, but to allow for any unobserved influences or state dependence in labour force participation, our preferred model is a dynamic panel model. We show how the estimates of current disability are changed once we control for the effect of past disability and previous participation. We compare base estimates of disability with those controlling for unobserved heterogeneity and past participation. The results suggest that the base effect of disability is overestimated by between 40-60 per cent for men and by 5-10 per cent for women.

Suggested Citation

  • Brenda Gannon, 2004. "Disability and Labour Force Participation in Ireland 1995-2000," Economics, Finance and Accounting Department Working Paper Series n1431004, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  • Handle: RePEc:may:mayecw:n1431004
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    References listed on IDEAS

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    1. Madden, D. & Walker, I., 1999. "Labour Supply, Health and Caring: Evidence from the UK," Papers 99/28, College Dublin, Department of Political Economy-.
    2. Bound, John & Schoenbaum, Michael & Stinebrickner, Todd R. & Waidmann, Timothy, 1999. "The dynamic effects of health on the labor force transitions of older workers," Labour Economics, Elsevier, vol. 6(2), pages 179-202, June.
    3. Barbara L. Wolfe & Steven C. Hill, 1995. "The Effect of Health on the Work Effort of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 42-62.
    4. Brent Kreider, 1999. "Latent Work Disability and Reporting Bias," Journal of Human Resources, University of Wisconsin Press, pages 734-769.
    5. Kidd, Michael P. & Sloane, Peter J. & Ferko, Ivan, 2000. "Disability and the labour market: an analysis of British males," Journal of Health Economics, Elsevier, pages 961-981.
    6. B. Wolfe & S. C. Hill, "undated". "The effect of health on the work effort of low-income single mothers," Institute for Research on Poverty Discussion Papers 979-92, University of Wisconsin Institute for Research on Poverty.
    7. Sickles, Robin C & Taubman, Paul, 1986. "An Analysis of the Health and Retirement Status of the Elderly," Econometrica, Econometric Society, vol. 54(6), pages 1339-1356, November.
    8. Chirikos, Thomas N & Nestel, Gilbert, 1985. "Further Evidence on the Economic Effects of Poor Health," The Review of Economics and Statistics, MIT Press, pages 61-69.
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    Cited by:

    1. John Cullinan & Brenda Gannon & Eamon O’Shea, 2013. "The welfare implications of disability for older people in Ireland," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 171-183, April.
    2. Gannon, Brenda & Munley, Margaret, 2009. "Age and disability: Explaining the wage differential," Social Science & Medicine, Elsevier, pages 47-55.
    3. Annemie Nys & Leen Meeusen & Vincent Corluy, 2016. "Who cares? A Counterfactual Analysis of Household Work Intensity in Households with Disabled Family Members," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, pages 675-691.

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    Keywords

    Disability; labour force participation; static and dynamic panel models;

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