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Subjective Health Measures, Reporting Errors and Endogeneity in the Relationship Between Health and Work

  • Maarten Lindeboom

    ()

    (University of Amsterdam - Department of Economics)

  • Marcel Kerkhofs

    ()

    (OSA Institute for Labour Studies, Tilburg University)

This paper explores the interrelation between health and work decisions of older workers. For this, two issues are of relevance. Firstly, health and work may be endogenously related because of direct effects of health on work and vice versa, and because of unobservables that may relate observed health and work outcomes. Secondly, social surveys usually contain self-assessed health measures and research indicates that these may be affected by endogenous, state-dependent, reporting behavior. A solution to the 'Health and Retirement Nexus' requires an integrated model for work decisions, health production and health-reporting mechanisms. We formulate such a model and estimate it on a longitudinal dataset of Dutch elderly.

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Paper provided by Tor Vergata University, CEIS in its series CEIS Research Paper with number 46.

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Length: 47
Date of creation: 16 Feb 2004
Date of revision:
Handle: RePEc:rtv:ceisrp:46
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  1. Sickles, Robin C & Taubman, Paul, 1986. "An Analysis of the Health and Retirement Status of the Elderly," Econometrica, Econometric Society, vol. 54(6), pages 1339-56, November.
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  17. Bound, John & Burkhauser, Richard V., 1999. "Economic analysis of transfer programs targeted on people with disabilities," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 51, pages 3417-3528 Elsevier.
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