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Health effects on labour market exits and entries

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  • García-Gómeza, P
  • Jones, A.M
  • Rice, N

Abstract

This paper analyses the role of health on exits out of and entries into employment using data from the first twelve waves of the British Household Panel Survey (1991-2002). We use discretetime duration models to estimate the effect of health on the hazard of becoming non-employed and on the hazard of becoming employed. The results show that general health, measured by a variable that captures health limitations and by a constructed latent health index, affects entries into and exits out of employment; the effects being higher for men than for women. Moreover, results suggest that changes in mental health status influences only the hazard of nonemployment for the stock sample of workers. The results are robust to different definitions of employment, and to the exclusion of older workers from the analysis.

Suggested Citation

  • García-Gómeza, P & Jones, A.M & Rice, N, 2008. "Health effects on labour market exits and entries," Health, Econometrics and Data Group (HEDG) Working Papers 08/03, HEDG, c/o Department of Economics, University of York.
    • Handle: RePEc:yor:hectdg:08/03
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    More about this item

    Keywords

    health; health shocks; discrete-time hazard models; employment; BHPS;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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