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Health and Work of the Elderly: Subjective Health Measures, Reporting Errors and the Endogenous Relationship between Health and Work

Author

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  • Lindeboom, Maarten

    (Vrije Universiteit Amsterdam)

  • Kerkhofs, Marcel

    (Tilburg University)

Abstract

This paper aims to explore the interrelation between health and work decisions of elderly workers, taking the various ways in which health and work can influence each other explicitly into account. For this, two issues are of relevance. Self-assessed health measures are usually at hand in empirical analyses and research indicates that these may be endogenous, state dependent, reporting behaviour. Furthermore, even if an objective health measure is used, it is not likely to be strictly exogenous to labour market status or labour income. Health and labour market variables are correlated because of unobserved individual-specific characteristics (e.g., investments in human capital and health capital) Moreover, one’s labour market status is expected to have a (reverse) causal effect on health. A solution to the ‘Health and Retirement Nexus’ requires an integrated model for work decisions, health production and health reporting mechanisms. We formulate such a model and estimate it on a longitudinal dataset of Dutch elderly.

Suggested Citation

  • Lindeboom, Maarten & Kerkhofs, Marcel, 2002. "Health and Work of the Elderly: Subjective Health Measures, Reporting Errors and the Endogenous Relationship between Health and Work," IZA Discussion Papers 457, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp457
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    References listed on IDEAS

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    1. Marcel Kerkhofs & Maarten Lindeboom, 1995. "Subjective health measures and state dependent reporting errors," Health Economics, John Wiley & Sons, Ltd., vol. 4(3), pages 221-235, May.
    2. Marcel Kerkhofs & Maarten Lindeboom, 1997. "Age related health dynamics and changes in labour market status," Health Economics, John Wiley & Sons, Ltd., vol. 6(4), pages 407-423, July.
    3. Richard V. Burkhauser, 1979. "The Pension Acceptance Decision of Older Workers," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 63-75.
    4. Gloria J. Bazzoli, 1985. "The Early Retirement Decision: New Empirical Evidence on the Influence of Health," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 214-234.
    5. John Bound, 1991. "Self-Reported Versus Objective Measures of Health in Retirement Models," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 106-138.
    6. Steven Stern, 1989. "Measuring the Effect of Disability on Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 361-395.
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    Cited by:

    1. Tansel, Aysit & Keskin, Halil Ibrahim, 2017. "Education Effects on Days Hospitalized and Days out of Work by Gender: Evidence from Turkey," IZA Discussion Papers 11210, Institute of Labor Economics (IZA).
    2. Danilo Cavapozzi, 2008. "Health and Labor Supply Dynamics of Older Married Workers," "Marco Fanno" Working Papers 0073, Dipartimento di Scienze Economiche "Marco Fanno".
    3. Udo Schneider & Christian Pfarr & Brit Schneider & Volker Ulrich, 2012. "I feel good! Gender differences and reporting heterogeneity in self-assessed health," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(3), pages 251-265, June.
    4. Brenda Gannon, 2004. "Disability and Labour Force Participation in Ireland 1995-2000," Economics Department Working Paper Series n1431004, Department of Economics, National University of Ireland - Maynooth.
    5. 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, September.
    6. Umut Oguzoglu, 2010. "Dynamics of work limitation and work in Australia," Health Economics, John Wiley & Sons, Ltd., vol. 19(6), pages 656-669, June.
    7. Jan Erik Askildsen & Espen Bratberg & Øivind Anti Nilsen, 2005. "Unemployment, labor force composition and sickness absence: a panel data study," Health Economics, John Wiley & Sons, Ltd., vol. 14(11), pages 1087-1101, November.
    8. Paul Frijters & John P. Haisken-DeNew & Michael Shields, 2003. "Estimating The Causal Effect of Income on Health: Evidence from Post Reunification East Germany," CEPR Discussion Papers 465, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    9. Mareva Sabatier & Bérangère Legendre, 2017. "The puzzle of older workers’ employment: distance to retirement and health effects," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(1), pages 45-61, April.
    10. Gannon, Brenda & Nolan, Brian, 2007. "Transitions in Disability and Work/Discapacidad y trabajo: una revisión de la evidencia británica," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 25, pages 447-472, Abril.
    11. Philippe Tessier & François-Charles Wolff, 2005. "Offre de travail et santé en France," Economie & Prévision, La Documentation Française, vol. 168(2), pages 17-41.
    12. Melanie K. Jones, 2007. "Does Part‐Time Employment Provide A Way Of Accommodating A Disability?," Manchester School, University of Manchester, vol. 75(6), pages 695-716, December.
    13. Subhasree Basu Roy, 2018. "Effect of Health on Retirement of Older Americans: a Competing Risks Study," Journal of Labor Research, Springer, vol. 39(1), pages 56-98, March.
    14. Aysit Tansel & Halil Ibrahim Keskin, 2017. "Education Effects on Days Hospitalized and Days out of Work by Gender: Evidence from Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1721, Koc University-TUSIAD Economic Research Forum.
    15. Deschryvere, Matthias, 2004. "Labour Force Behavior of Elderly Two Adult Households: Evidence from EU-countries," Discussion Papers 933, The Research Institute of the Finnish Economy.
    16. Deschryvere, Matthias, 2004. "Health and Retirement. An Update of the Literature," Discussion Papers 932, The Research Institute of the Finnish Economy.
    17. Brenda Gannon, 2009. "The influence of economic incentives on reported disability status," Health Economics, John Wiley & Sons, Ltd., vol. 18(7), pages 743-759, July.
    18. Fe, Eduardo & Hollingsworth, Bruce, 2012. "Estimating the eect of retirement on mental health via panel discontinuity designs," MPRA Paper 38162, University Library of Munich, Germany.
    19. Paul L. Latreille, 2009. "Disability, Health and the Labour Market: Evidence from the Welsh Health Survey," Local Economy, London South Bank University, vol. 24(3), pages 192-210, May.

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    More about this item

    Keywords

    endogeneity; state dependent reporting errors; retirement; health;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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