Latent Work Disability and Reporting Bias

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Latent Work Disability and Reporting Bias

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Kreider, Brent

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Brent Kreider

Abstract

A measure of "true" disability is constructed as a continuous index of unobserved work limitation using information from the Health and Retirement Study. Estimates from a simultaneous model of work participation, disability, and income flows suggest that nonworkers tend to substantially overreport limitation, with overreporting most prevalent among nonworking women, high school dropouts, nonwhites, and former blue collar workers. Former white collar workers are found unlikely to overreport limitation. Use of a "biased" disability measure in the model leads to an upward-biased estimate of the effect of limitation on nonwork and to a downward-biased estimate of the effect of income.

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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 5185.

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Date of creation: 01 Mar 2002
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Publication status: Published in Journal of Human Resources, Fall 1999, pp. 734-769.
Handle: RePEc:isu:genres:5185

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Ricardo Pagán & Andrés J. Marchante, 2004. "Análisis de las diferencias salariales por discapacidad en España: el caso de los varones," Hacienda Pública Española, IEF, vol. 171(4), pages 75-100, december. [Downloadable!]
M. Christopher Auld, 2002. "Disentangling the effects of morbidity and life expectancy on labor market outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 471-483. [Downloadable!]
repec:ese:iserwp: is not listed on IDEAS
Doreen Wing Han Au & Thomas F. Crossley & Martin Schellhorn, 2005. "The effect of health changes and long-term health on the work activity of older Canadians," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 999-1018. [Downloadable!]
Other versions:
- Au, Doreen & Crossley, Thomas F. & Schellhorn, Martin, 2004. "The Effect of Health Changes and Long-Term Health on the Work Activity of Older Canadians," IZA Discussion Papers 1281, Institute for the Study of Labor (IZA). [Downloadable!]
- Doreen Wing Han Au & Thomas F. Crossley & Martin Schellhorn, 2005. "The Effect of Health Changes and Long-term Health on the Work Activity of Older Canadians," Quantitative Studies in Economics and Population Research Reports 397, McMaster University. [Downloadable!]
- Doreen Wing Han Au & Thomas F. Crossley & Martin Schellhorn, 2004. "The Effect of Health Changes and Long-term Health on the Work Activity of Older Canadians," Social and Economic Dimensions of an Aging Population Research Papers 119, McMaster University. [Downloadable!]
- Doreen Wing Han Au & Thomas F. Crossley & Martin Schellhorn, 2005. "The Effect of Health Changes and Long-term Health on the Work Activity of Older Canadians," Social and Economic Dimensions of an Aging Population Research Papers 134, McMaster University. [Downloadable!]
Gannon, Brenda, 2004. "Disability and Labour Force Participation in Ireland 1995-2000," Papers HRBWP11, Economic and Social Research Institute (ESRI). [Downloadable!]
Lixin Cai, 2007. "Effects of Health on Wages of Australian Men," Melbourne Institute Working Paper Series wp2007n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
Other versions:
- Lixin Cai, 2009. "Effects of Health on Wages of Australian Men," The Economic Record, The Economic Society of Australia, vol. 85(3), pages 290-306, 09. [Downloadable!] (restricted)
John Pepper & Brent Kreider, 2001. "Inferring Disability Status from Corrupt Data," Virginia Economics Online Papers 354, University of Virginia, Department of Economics. [Downloadable!]
Other versions:
- Kreider, Brent & Pepper, John V., 2003. "Inferring Disability Status from Corrupt Data," Staff General Research Papers 10228, Iowa State University, Department of Economics.
- Brent Kreider & John Pepper, 2008. "Inferring disability status from corrupt data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(3), pages 329-349. [Downloadable!]
James Banks & Arie Kapteyn & James P. Smith & Arthur van Soest, 2004. "International Comparisons of Work Disability," Working Papers 155, RAND Corporation Publications Department. [Downloadable!]
Other versions:
- Banks, J. & Kapteyn, A. & Smith, J.P. & Soest, A.H.O. van, 2004. "International comparisons of work disability," Discussion Paper 36, Tilburg University, Center for Economic Research. [Downloadable!]
- Banks, James & Kapteyn, Arie & Smith, James P. & van Soest, Arthur, 2004. "International Comparisons of Work Disability," IZA Discussion Papers 1118, Institute for the Study of Labor (IZA). [Downloadable!]
Didier Blanchet & Thierry Debrand, 2007. "Aspiration à la retraite, santé et satisfaction au travail : une comparaison européenne," Working Papers DT1, IRDES institut for research and information in health economics, revised Feb 2007. [Downloadable!]
Teresa Bago d'Uva & Eddy Van Doorslaer & Maarten Lindeboom & Owen O'Donnell, 2008. "Does reporting heterogeneity bias the measurement of health disparities?," Health Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 351-375. [Downloadable!]
Other versions:
- Teresa Bago d’Uva & Eddy Van Doorslaer & Maarten Lindeboom & Owen O’Donnell & Somnath Chatterji, 2006. "Does reporting heterogeneity bias the measurement of health disparities?," Health, Econometrics and Data Group (HEDG) Working Papers 06/03, HEDG, c/o Department of Economics, University of York. [Downloadable!]
Sergi Jimenez-Martin & Jose M. Labeaga & Cristina Vilaplana Prieto, 2007. "Award errors and permanent disability benefits in Spain," Health, Econometrics and Data Group (HEDG) Working Papers 07/04, HEDG, c/o Department of Economics, University of York. [Downloadable!]
Other versions:
- Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana, 2006. "Award Errors and Permanent Disability Benefits in Spain," Working Papers 2006-18, FEDEA. [Downloadable!]
- Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana Prieto, 2006. "Award errors and permanent disability benefits in Spain," Economics Working Papers 966, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
Hugo Benitez-Silva & Moshe Buchinsky & Hiu-Man Chan & John Rust & Sofia Sheivasser, 1997. "An Empirical Analysis of the Social Security Disability Application, Appeal, and Award Process," Public Economics 9712001, EconWPA, revised 16 Feb 1998. [Downloadable!]
John Bound & Todd Stinebrickner & Timothy Waidmann, 2007. "Health, Economic Resources and the Work Decisions of Older Men," NBER Working Papers 13657, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- John Bound & Todd Stinebrickner & Timothy Waidmann, 2007. "Health, Economic Resources and the Work Decisions of Older Men," University of Western Ontario, RBC Financial Group Economic Policy Research Institute Working Papers 20076, University of Western Ontario, RBC Financial Group Economic Policy Research Institute. [Downloadable!]
Lixin Cai & Guyonne Kalb, 2006. "Health status and labour force participation: evidence from Australia," Health Economics, John Wiley & Sons, Ltd., vol. 15(3), pages 241-261. [Downloadable!]
Didier Blanchet & Thierry Debrand, 2008. "The sooner, the better? Analyzing preferences for early retirement in European countries," Working Papers DT13, IRDES institut for research and information in health economics, revised Jul 2008. [Downloadable!]
Sarah Brown & Jenny Roberts & Karl Taylor, 2008. "Reservation Wages, Labour Market Participation And Health," Working Papers 2008002, The University of Sheffield, Department of Economics, revised Feb 2008. [Downloadable!]
Brenda Gannon, 2005. "A dynamic analysis of disability and labour force participation in Ireland 1995-2000," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 925-938. [Downloadable!]
Lixin Cai & Guyonne Kalb, 2005. "Health Status and Labour Force Status of Older Working-Age Australian Men," Melbourne Institute Working Paper Series wp2005n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]

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