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Dynamics in Health and Employment: Evidence from Indonesia

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  • Mani, Subha

    (Fordham University)

  • Mitra, Sophie

    (Fordham University)

  • Sambamoorthi, Usha

    (West Virginia University)

Abstract

This paper examines the consequences of disability, identifying for the first time, the separate impacts of onsets and recoveries from disability on both employment status and hours worked using panel data from Indonesia. We find that changes in physical functioning have no affect hours worked among the employed. However, we find that onsets of physical limitations lead to an increase in the probability of leaving employment, while recoveries increase the probability of returning to work. We also find a larger effect among self-employed workers compared to salaried workers. These results overall point towards a need for social protection policies with a focus on health, disability, and employment in Indonesia.

Suggested Citation

  • Mani, Subha & Mitra, Sophie & Sambamoorthi, Usha, 2016. "Dynamics in Health and Employment: Evidence from Indonesia," IZA Discussion Papers 10256, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10256
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    2. Pinna Pintor, Matteo & Fumagalli, Elena & Suhrcke, Marc, 2024. "The impact of health on labour market outcomes: A rapid systematic review," Health Policy, Elsevier, vol. 143(C).
    3. Kengo Igei, 2018. "Managing Were the Adverse Effects of Disability on Employment Mitigated during 2002-2015 in South Africa?: A Pseudo-Panel Approach," Working Papers 168, JICA Research Institute.
    4. Takasaki, Yoshito, 2020. "Impacts of disability on poverty: Quasi-experimental evidence from landmine amputees in Cambodia," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 85-107.
    5. Ola Abualghaib & Nora Groce & Natalie Simeu & Mark T. Carew & Daniel Mont, 2019. "Making Visible the Invisible: Why Disability-Disaggregated Data is Vital to “Leave No-One Behind”," Sustainability, MDPI, vol. 11(11), pages 1-11, May.
    6. Agarwal, Neha & Kohler, Hans-Peter & Mani, Subha, 2017. "Dynamics in Physical Functioning Limitations," IZA Discussion Papers 11101, Institute of Labor Economics (IZA).
    7. Ute Rink & Theresa Rollwage, 2022. "Household disability and time preferences: Evidence from incentivized experiments in Vietnam," TVSEP Working Papers wp-027, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.

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    More about this item

    Keywords

    health; disability; aging; employment; hours worked; Indonesia;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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