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The Impact of Diabetes on Labour Market Outcomes

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  • Steven F. Koch

    (Department of Economics, University of Pretoria, Private Bag X20, Hatfield, South Africa)

  • Evelyn Tshela

    (Department of Economics, University of Pretoria, Private Bag X20, Hatfield, South Africa; Council for Medical Schemes, Block A, Eco Glades 2 Office Park, 420 Witch-Hazel Avenune, Eco Park, Centurion, South Africa)

Abstract

This study estimates the effect of diabetes on labour market outcomes (employment, unemployment and labour force paricipation) in South Africa using data from the South African General Household Survey (2018). We first examine the possibility that diabetes status is endogenous, through the application of heteroscedasticity-based instruments. Internal instruments meet the underlying diagnostic expectations, but do not consistently accept the endogeneity hypothesis. Thus, we turn to multinomial logit models, ignoring endogeneity, to estimate the effect of diabetes. Our findings indicate that diabetes has differential effects for men and women, where the magnitude of the effect tends to be larger (in absolute value) for women.

Suggested Citation

  • Steven F. Koch & Evelyn Tshela, 2020. "The Impact of Diabetes on Labour Market Outcomes," Working Papers 2020109, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:2020109
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