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Health effects on labour market exits and entries

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

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.

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Paper provided by HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 08/03.

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Date of creation: Mar 2008
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Handle: RePEc:yor:hectdg:08/03
Contact details of provider: Postal: HEDG/HERC, Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
Phone: (0)1904 323776
Fax: (0)1904 323759
Web page: http://www.york.ac.uk/economics/postgrad/herc/hedg/
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  1. Elisabetta Marzano, 2006. "How Many Labour Force States? An Analysis Based on the British Household Panel Survey (BHPS)," LABOUR, CEIS, vol. 20(2), pages 237-254, 06.
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  8. 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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  11. Heitmueller, Axel, 2007. "The chicken or the egg?: Endogeneity in labour market participation of informal carers in England," Journal of Health Economics, Elsevier, vol. 26(3), pages 536-559, May.
  12. John Bound & Michael Schoenbaum & Todd R. Stinebrickner & Timothy Waidmann, 1998. "The Dynamic Effects of Health on the Labor Force Transitions of Older Workers," NBER Working Papers 6777, National Bureau of Economic Research, Inc.
  13. Maarten Lindeboom & Marcel Kerkhofs, 2009. "Health and work of the elderly: subjective health measures, reporting errors and endogeneity in the relationship between health and work," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(6), pages 1024-1046.
  14. Ronald Hagan & Andrew M. Jones & Nigel Rice, 2006. "Health and retirement in Europe," Health, Econometrics and Data Group (HEDG) Working Papers 06/10, HEDG, c/o Department of Economics, University of York.
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  16. Gloria J. Bazzoli, 1985. "The Early Retirement Decision: New Empirical Evidence on the Influence of Health," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 214-234.
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  25. repec:ese:iserwp:2006-53 is not listed on IDEAS
  26. Tano, Doki K., 1991. "Are unemployment and out of the labor force behaviorally distinct labor force states? : New evidence from the gross change data," Economics Letters, Elsevier, vol. 36(1), pages 113-117, May.
  27. Blau, David M, 1998. "Labor Force Dynamics of Older Married Couples," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 595-629, July.
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