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Direct and indirect effects of obesity on U.S. labor market outcomes of older working age adults

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  • Renna, F.
  • Thakur, Nidhi

Abstract

In this paper, we study the impact of obesity on labor market decisions of older working age adults in USA. Labor market outcomes are defined as any one of three: working; not working due to a disability; or not working due to an early retirement. Based on existing medical literature, we deduce that obesity can largely impact labor market decisions directly through impairment of bodily functions and indirectly by being a risk factor for various diseases like hypertension, arthritis, etc. We use data from the US Health and Retirement Study on older adults who were no more than 64 years of age in 2002. In our modeling effort, we employ two estimation strategies. We first estimate a model in which employment outcome in 2002 is a function of weight status in 1992. In the second strategy, controlling for time-invariant individual heterogeneity, we first consider the impact of obesity on bodily impairments and chronic illnesses; then, we consider the impact of such impairments and illnesses on labor market outcomes. Our results indicate that, for men, obesity class 2 and 3 increases both the probability of taking an early retirement and the incidence of disability by 1.5 percentage points. For women, we find that obesity class 2 and 3 increases the probability of taking an early retirement by 2.5 percentage points and the incidence of disability by 1.7 percentage points.

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  • Renna, F. & Thakur, Nidhi, 2010. "Direct and indirect effects of obesity on U.S. labor market outcomes of older working age adults," Social Science & Medicine, Elsevier, vol. 71(2), pages 405-413, July.
    • Handle: RePEc:eee:socmed:v:71:y:2010:i:2:p:405-413
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    2. Kinge, Jonas Minet, 2016. "Waist circumference, body mass index and employment outcomes," HERO Online Working Paper Series 2016:4, University of Oslo, Health Economics Research Programme.
    3. Christina Hansen Edwards & Johan Håkon Bjørngaard & Jonas Minet Kinge, 2021. "The relationship between body mass index and income: Using genetic variants from HUNT as instrumental variables," Health Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 1933-1949, August.
    4. Pagan, Ricardo & Haro, Carmen Ordóñez de & Sánchez, Carlos Rivas, 2016. "Obesity, job satisfaction and disability at older ages in Europe," Economics & Human Biology, Elsevier, vol. 20(C), pages 42-54.
    5. Larose, Samantha L. & Kpelitse, Koffi A. & Campbell, M. Karen & Zaric, Gregory S. & Sarma, Sisira, 2016. "Does obesity influence labour market outcomes among working-age adults? Evidence from Canadian longitudinal data," Economics & Human Biology, Elsevier, vol. 20(C), pages 26-41.
    6. Mosca, Irene, 2013. "Body mass index, waist circumference and employment: Evidence from older Irish adults," Economics & Human Biology, Elsevier, vol. 11(4), pages 522-533.
    7. Kinge, Jonas Minet, 2015. "Body mass index and employment status: a new look," HERO Online Working Paper Series 2015:3, University of Oslo, Health Economics Research Programme.
    8. Kinge, Jonas Minet, 2016. "Body mass index and employment status: A new look," Economics & Human Biology, Elsevier, vol. 22(C), pages 117-125.
    9. Wilson, Nicholas & Janicki, Martha, 2016. "A cut above the rest? Private anthropometrics in marriage markets," Economics & Human Biology, Elsevier, vol. 23(C), pages 164-179.
    10. Brown, Christian & Routon, P. Wesley, 2018. "On the distributional and evolutionary nature of the obesity wage penalty," Economics & Human Biology, Elsevier, vol. 28(C), pages 160-172.
    11. Jonas Minet Kinge, 2017. "Waist circumference, body mass index, and employment outcomes," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(6), pages 787-799, July.
    12. Groves, Jeremy & Wilcox, Virginia, 2023. "The impact of overweight and obesity on unemployment duration among young American workers," Economics & Human Biology, Elsevier, vol. 51(C).

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