Subjective Health Assessments And Active Labor Market Participation Of Older Men: Evidence From A Semiparametric Binary Choice Model With Nonadditive Correlated Individual-Specific Effects

TitleSubjective Health Assessments And Active Labor Market Participation Of Older Men: Evidence From A Semiparametric Binary Choice Model With Nonadditive Correlated Individual-Specific Effects
Publication TypeJournal Article
Year of Publication2011
AuthorsMaurer, J, Klein, R, Vella, F
JournalThe Review of Economics and Statistics
Volume93
Issue3
Pagination764-774
KeywordsDemographics, Employment and Labor Force, Health Conditions and Status, Methodology, Other
Abstract

We use panel data from the U.S. Health and Retirement Study, 1992-2002, to estimate the effect of self-assessed health limitations on the active labor market participation of older men. Self-assessments of health are likely to be endogenous to labor supply due to justification bias and individual-specific heterogeneity in subjective evaluations. We address both concerns. We propose a semiparametric binary choice procedure that incorporates nonadditive correlated individual-specific effects. Our estimation strategy identifies and estimates the average partial effects of health and functioning on labor market participation. The results indicate that poor health plays a major role in labor market exit decisions. PUBLICATION ABSTRACT

DOI10.1162/REST_a_00097
Endnote Keywords

Studies/Labor market/Older people/Male employees/Health/Econometrics/Impact analysis

Endnote ID

62576

Citation Key7599