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
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

URLhttp://proquest.umi.com.proxy.lib.umich.edu/pqdweb?did=2422512221andFmt=7andclientId=17822andRQT=309andVName=PQD
Endnote Keywords

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

Endnote ID

62576

Citation Key7599