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Health Status and Labor Force Participation: Evidence for Urban Low and Middle Income Individuals in Colombia

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  • Ana María Iregui-Bohórquez
  • Ligia Alba Melo-Becerra
  • María Teresa Ramírez-Giraldo

Abstract

This paper uses the first wave of the Colombian Longitudinal Survey (ELCA) to analyze the relationship between individual health status and labor force participation. The empirical modeling strategy accounts for the presence of potential endogeneity between these two variables. The results show that there is a positive relationship between health and labor force participation in both directions, indicating that better health is likely to lead to a higher probability of participation in the labor market, and also that those who are in the labor market are more likely to report better health. Moreover, interesting differences arise when the database is further divided by gender and/or age groups. Our findings highlight the importance of public policy to guarantee good health conditions of the population which could also have a positive impact on labor productivity and consequently on long-run economic growth.

Suggested Citation

  • Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo, 2014. "Health Status and Labor Force Participation: Evidence for Urban Low and Middle Income Individuals in Colombia," Borradores de Economia 12304, Banco de la Republica.
    • Handle: RePEc:col:000094:012304
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    2. Yew Seng Law & Chung-Khain Wye, 2023. "The effects of fertility on female labour force participation in OECD countries: the role of education and health," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 47(3), pages 280-302, July.
    3. Rolle Remi Ahuru & Efegbere Henry Akpojubar, 2020. "The Effects Of Ill-Health And Disabilities On Labour Force Participation Among Nigerian Households," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 5(2), pages 8-19, September.
    4. Seema Narayan & Tri Tung Nguyen & Xuan-Hoa Nghiem, 2021. "Does Economic Integration Increase Female Labour Force Participation? Labour Force Participation?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 24(1), pages 1-34, March.

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    More about this item

    Keywords

    Health status; labor force participation; endogeneity; Colombia;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • I10 - Health, Education, and Welfare - - Health - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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