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Labour supply, health and caring : evidence from the UK

Author

Listed:
  • David (David Patrick) Madden
  • Ian Walker

Abstract

This paper investigates the impact of own-health,and that of others, on individual labour supply. We estimate a model of hours of caring and hours of work using a large micro dataset of UK households. We find that own ill health has a negative effect on wages for men but not women; being a carer has a negative effect on wages for women but not men; and that unobservables associated with caring are positively correlated with wages for men but not for women. We also find that own ill health has a strong negative effect on the labour supply of both men and women and a negative effect on their supply of caring. We also find that hours caring are responsive to wages for women.

Suggested Citation

  • David (David Patrick) Madden & Ian Walker, 1999. "Labour supply, health and caring : evidence from the UK," Working Papers 199928, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:199928
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    File URL: http://hdl.handle.net/10197/766
    File Function: First version, 1999
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    References listed on IDEAS

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    1. Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-134, February.
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    3. John Bound & Michael Schoenbaum & Timothy Waidmann, 1995. "Race and Education Differences in Disability Status and Labor Force Attachment," NBER Working Papers 5159, National Bureau of Economic Research, Inc.
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    5. Jon A. Breslaw & Morton Stelcner, 1987. "The Effect of Health on the Labor Force Behavior of Elderly Men in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 22(4), pages 490-517.
    6. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-951, July.
    7. Parsons, Donald O, 1982. "The Male Labour Force Participation Decision: Health, Reported Health, and Economic Incentives," Economica, London School of Economics and Political Science, vol. 49(193), pages 81-91, February.
    8. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
    9. Robert Haveman & Philip de Jong & Barbara Wolfe, 1991. "Disability Transfers and the Work Decision of Older Men," The Quarterly Journal of Economics, Oxford University Press, vol. 106(3), pages 939-949.
    10. Haveman, Robert & Wolfe, Barbara & Kreider, Brent & Stone, Mark, 1994. "Market work, wages, and men's health," Journal of Health Economics, Elsevier, vol. 13(2), pages 163-182, July.
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    12. Barmby, Tim & Charles, Sue, 1992. "Informal Care and Female Labour Supply," Scottish Journal of Political Economy, Scottish Economic Society, vol. 39(3), pages 288-301, August.
    13. John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
    14. Anderson, Kathryn H. & Burkhauser, Richard V., 1984. "The importance of the measure of health in empirical estimates of the labor supply of older men," Economics Letters, Elsevier, vol. 16(3-4), pages 375-380.
    15. Kathryn H. Anderson & Richard V. Burkhauser, 1985. "The Retirement-Health Nexus: A New Measure of an Old Puzzle," Journal of Human Resources, University of Wisconsin Press, vol. 20(3), pages 315-330.
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    Citations

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    Cited by:

    1. Laura Crespo, 2006. "Caring For Parents And Employment Status Of European Mid-Life Women," Working Papers wp2006_0615, CEMFI.
    2. 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.
    3. Brenda Gannon & Brian Nolan, 2004. "Disability and Labour Force Participation in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 35(2), pages 135-155.

    More about this item

    Keywords

    Labour supply; Health; Disability; Labor supply--Great Britain; Employees--Health and hygiene; Caregivers;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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