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Temporary versus permanent employment: Does health matter?

Author

Listed:
  • Gail Pacheco

    (Auckland University of Techology)

  • Dominic Page

    (University of the West of England, Bristol)

  • Don Webber

    (University of the West of England, Bristol)

Abstract

Health issues may inhibit active participation in the labour market and restrict the types of employment available to an individual. This paper presents an investigation into the influences of mental and physical health on employment type (full time, permanent, fixed term, contract, seasonal and casual) and employment propensity per se. Applications of bivariate probit regression illustrate a complex blend of effects of health on employment propensity and employment type. Being in physical pain does not influence employment propensity but does reduce the probability of being in full-time or permanent employment, with such people being more likely to work casually. In addition to adversely influencing employment propensity, having depression does (not) diminish the probability of being in permanent (full-time) employment. Applications of instrumental variable probit regression across employment type reveal that mental health is exogenous to most types of employment, except permanent. These results revitalize the debate on the need for greater awareness and understanding of the inhibiting effects of health on employment.

Suggested Citation

  • Gail Pacheco & Dominic Page & Don Webber, 2012. "Temporary versus permanent employment: Does health matter?," Working Papers 20121211, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    • Handle: RePEc:uwe:wpaper:20121211
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    File URL: http://www2.uwe.ac.uk/faculties/BBS/BUS/Research/economics2012/1211.pdf
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    References listed on IDEAS

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    Cited by:

    1. Gail Pacheco & Don Webber & Dominic Page, 2015. "Temporary Versus Permanent Employment: Does Health Matter?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 18(2), pages 169-186.

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    More about this item

    Keywords

    Mental health; Physical health; Employment propensity; Employment type;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other

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