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The impact of diabetes on employment: genetic IVs in a bivariate probit

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  • H. Shelton Brown
  • José A. Pagán
  • Elena Bastida

Abstract

Diabetes has been shown to have a detrimental impact on employment and labor market productivity, which results in lost work days and higher mortality/disability. This study utilizes data from the Border Epidemiologic Study on Aging to analyze the endogeneity of diabetes in an employment model. We use family history of diabetes as genetic instrumental variables. We show that assuming that diabetes is an exogenous variable results in an overestimate (underestimate) of the negative impact of diabetes on female (male) employment. Our results are particularly relevant in the case of populations where genetic predisposition has an important role in the etiology of diabetes. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • H. Shelton Brown & José A. Pagán & Elena Bastida, 2005. "The impact of diabetes on employment: genetic IVs in a bivariate probit," Health Economics, John Wiley & Sons, Ltd., vol. 14(5), pages 537-544, May.
    • Handle: RePEc:wly:hlthec:v:14:y:2005:i:5:p:537-544
    DOI: 10.1002/hec.942
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    References listed on IDEAS

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    1. Elena Bastida & José A. Pagán, 2002. "The impact of diabetes on adult employment and earnings of Mexican Americans: Findings from a community based study," Health Economics, John Wiley & Sons, Ltd., vol. 11(5), pages 403-413, July.
    2. Laura Greene Knapp & Terry Seaks, 1998. "A Hausman test for a dummy variable in probit," Applied Economics Letters, Taylor & Francis Journals, vol. 5(5), pages 321-323.
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    4. William H. Greene, 1998. "Gender Economics Courses in Liberal Arts Colleges: Further Results," The Journal of Economic Education, Taylor & Francis Journals, vol. 29(4), pages 291-300, January.
    5. Kahn, Matthew E, 1998. "Health and Labor Market Performance: The Case of Diabetes," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 878-899, October.
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