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Work and the accommodation of chronic illness: A re-examination of the health-labour supply relationship

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  • Sven Wilson

Abstract

This study uses a data set of over 14000 households from the state of New Jersey in the USA to estimate the impact of specific chronic health conditions on the probability of employment and finds wide variation of employment impacts across chronic conditions. Additionally, the elasticity of the employment response is generally greater for women and lower-skilled workers. Most notable is the role of comorbidity. Individuals with multiple conditions have markedly lower probability of employment, and chronic illness explains virtually all of the large gap in employment probability for those who have multiple conditions. This is shown using a summary index of disease status that correlates closely with employment rates across age groups. In the aggregate, chronic disease striking in adulthood explains about 10% of the total non-employment in the New Jersey among those aged 35-74. Finally, cross-sectional evidence gives little support for health as a primary determinant of the aggregate age-employment profile, though controlling for the age-specific severity of conditions may alter this finding.

Suggested Citation

  • Sven Wilson, 2001. "Work and the accommodation of chronic illness: A re-examination of the health-labour supply relationship," Applied Economics, Taylor & Francis Journals, vol. 33(9), pages 1139-1156.
    • Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1139-1156
    DOI: 10.1080/00036840010004527
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    1. Chung Choe, 2013. "Determinants of Labor Market Outcomes of Disabled Men Before and After the Americans with Disabilities Act of 1990," Korean Economic Review, Korean Economic Association, vol. 29, pages 211-233.
    2. Laura Romeu Gordo, 2006. "Effects of short- and long-term unemployment on health satisfaction: evidence from German data," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2335-2350.
    3. M. Solaiman Miah & Virginia Wilcox-Gok, 2007. "Do the sick retire early? Chronic illness, asset accumulation and early retirement," Applied Economics, Taylor & Francis Journals, vol. 39(15), pages 1921-1936.
    4. Osmani, Ahmad Reshad & Okunade, Albert A., 2019. "Cancer survivors in the labor market: Evidence from recent US micro-panel data," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 80, pages 202-221.
    5. Veronesi, Marcella, 2007. "Environmental Risk Factors, Health and the Labor Market Response of Married Men and Women in the United States," Working Papers 98552, University of Maryland, Department of Agricultural and Resource Economics.

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