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Disability and Labor Force Participation: Evidence from Turkish Males

Author

Listed:
  • Burcu Düzgün Öncel

    (Department of Economics, Marmara University)

  • Deniz Karaoğlan

    (Visiting Scholar, Department of Economics, METU)

Abstract

This paper attempts to examine the influence of disability status on labor force participation of males aged between 25 and 64. Our attention is only on males in order to avoid complications arising from gender differences in disability and labor force participation. The data is from Turkish Health Survey (THS) for the year 2012 prepared by Turkish Statistical Institute (TURKSTAT). We believe that revealing the differences in labor outcomes that can be attributed to disability status of individuals would be important to understand labor market dynamics of a developing and young populated country; Turkey. We define disability as an impairment of long term health conditions that lasts more than six months which restricts individual in daily activities and categorize individuals as non-disabled, disabled with no limitations, disabled with some limitations and disabled with severe limitations by controlling work related disabilities. In the first part of the study we provide descriptive analysis on the relationship between disability status and labor market states. We observe that higher share of disabled individuals with severe limitations are out of labor force in every age and low educated individuals experience more disabilities. In the second part, we first estimate probit equations in order to see the relationship between disability and labor force participation, then we implement propensity score matching (PSM) techniques in order to overcome selection bias. PSM results indicate that severe disability prevents males from entering into the labor force, whereas being non-disabled increases the probability of being in the labor force.

Suggested Citation

  • Burcu Düzgün Öncel & Deniz Karaoğlan, 2016. "Disability and Labor Force Participation: Evidence from Turkish Males," ERC Working Papers 1608, ERC - Economic Research Center, Middle East Technical University, revised Aug 2016.
  • Handle: RePEc:met:wpaper:1608
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    File URL: http://erc.metu.edu.tr/en/system/files/menu/series16/1608.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    disability; labor force participation; probit; propensity score matching;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models

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