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Disability and Multi-State Labour Force Choices with State Dependence

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  • Oguzoglu, Umut

    (University of Manitoba)

Abstract

I use a dynamic mixed multinomial logit model with unobserved heterogeneity to study the impact of work limiting disabilities on disaggregated labour choices. The first seven waves of the Household Income and Labour Dynamics in Australia survey are used to investigate this relationship. Findings point out to strong state dependence in employment choices. Further, the impact of disability on employment outcomes is highly significant. Model simulations suggest that high cross and own state dependence can amplify a one-off disability shock to alter the probability of full time employment and nonparticipation permanently, especially for low skilled individuals.

Suggested Citation

  • Oguzoglu, Umut, 2010. "Disability and Multi-State Labour Force Choices with State Dependence," IZA Discussion Papers 5408, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5408
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    Citations

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    Cited by:

    1. Jones, Melanie K. & Mavromaras, Kostas & Sloane, Peter J. & Wei, Zhang, 2015. "The Dynamic Effect of Disability on Work and Subjective Wellbeing in Australia," IZA Discussion Papers 9609, Institute of Labor Economics (IZA).
    2. Beusch, Elisabeth & Van Soest, Arthur, 2020. "A dynamic multinomial model of self-employment in the Netherlands," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 59, pages 5-32.
    3. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    4. Kostas Mavromaras & Joanne Flavel, 2017. "An Analysis of the Impact of Health on Occupation," The Economic Record, The Economic Society of Australia, vol. 93, pages 86-104, June.
    5. Allison Milner & Yamna Taouk & George Disney & Zoe Aitken & Jerome Rachele & Anne Kavanagh, 2018. "Employment predictors of exit from work among workers with disabilities: A survival analysis from the household income labour dynamics in Australia survey," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-14, December.
    6. Jones, Melanie K & Mavromaras, Kostas & Sloane, Peter J & Wei, Zhang (NILS), 2011. "NILS Working paper no 176. Disability and job mismatches in the Australian labour market," NILS Working Papers 26074, National Institute of Labour Studies.
    7. Jing Zheng & Yuxin Pei & Ya Gao, 2020. "Social Media as a Disguise and an Aid: Disabled Women in the Cyber Workforce in China," Social Inclusion, Cogitatio Press, vol. 8(2), pages 104-113.
    8. Ki-Dong Lee & Seo-Hyeong Lee & Jong-Il Choe, 2018. "State dependence, individual heterogeneity, and the choice of employment status: evidence from Korea," Applied Economics, Taylor & Francis Journals, vol. 50(8), pages 824-837, February.
    9. Danquah Michael & Schotte Simone & Sen Kunal, 2021. "Informal work in sub-Saharan Africa: Dead end or stepping-stone?," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-44, January.
    10. Jones, Melanie K. & Mavromaras, Kostas & Sloane, Peter J. & Wei, Zhang, 2011. "Disability and Job Mismatches in the Australian Labour Market," IZA Discussion Papers 6152, Institute of Labor Economics (IZA).
    11. Yi, DongGyu, 2014. "Three studies on environmental valuation," ISU General Staff Papers 201401010800005065, Iowa State University, Department of Economics.

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    More about this item

    Keywords

    disability; employment; dynamic mixed multinomial logit; panel data; HILDA; simulated maximum likelihood;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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