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Disability Status as an Unobservable: Estimates From a Structural Model

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  • Robert Haveman
  • Barbara Wolfe
  • Fung Mey Huang

Abstract

We propose an index of "true disability" by treating disability status as an unobservable phenomenon which is both causally related to a number of exogenous characteristics of an individual and correlated with a number of observed indicators of health, impairment and qualifications for employment. First, we define true disability and distinguish it from related concepts. We then discuss the importance of an objective and reliable measure of disability for research on the determinants of behavior. Next, we present the specification of our structural model for estimating true disability as a latent variable. Finally, we report the results of our estimation in a simple model of Labor force participation, and compare the effect of using the constructed index and a self-reported disability measure on understanding the determinants of behavior and choice.

Suggested Citation

  • Robert Haveman & Barbara Wolfe & Fung Mey Huang, 1989. "Disability Status as an Unobservable: Estimates From a Structural Model," NBER Working Papers 2831, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:2831
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    1. repec:bla:econom:v:49:y:1982:i:193:p:81-91 is not listed on IDEAS
    2. Jonathan S. Leonard, 1985. "Labor Supply Incentives and Disincentives for the Disabled," NBER Working Papers 1744, National Bureau of Economic Research, Inc.
    3. Mossey, J.M. & Shapiro, E., 1982. "Self-rated health: a predictor of mortality among the elderly," American Journal of Public Health, American Public Health Association, vol. 72(8), pages 800-808.
    4. Kathryn H. Anderson & Richard V. Burkhauser, 1985. "The Retirement-Health Nexus: A New Measure of an Old Puzzle," Journal of Human Resources, University of Wisconsin Press, vol. 20(3), pages 315-330.
    5. Haveman, Robert H & Wolfe, Barbara L, 1984. "The Decline in Male Labor Force Participation: Comment," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 532-541, June.
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    Cited by:

    1. Thomas Grebel & Uwe Cantner & Julia Schumm, 2019. "Interdisciplinarity: who reaps the benefits?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(1), pages 103-114, March.
    2. Даниелян, Владимир, 2016. "Детерминанты Пенсионного Возраста: Обзор Исследований [Determinants of Retirement Age: A Review of Research]," MPRA Paper 73865, University Library of Munich, Germany.
    3. Gregory Acs & Pamela Loprest, 1999. "The effect of disabilities on exits from AFDC," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(1), pages 28-49.
    4. Dwyer, Debra Sabatini & Mitchell, Olivia S., 1999. "Health problems as determinants of retirement: Are self-rated measures endogenous?," Journal of Health Economics, Elsevier, vol. 18(2), pages 173-193, April.
    5. François‐Charles Wolff, 2005. "Disability and Labour Supply during Economic Transition: Evidence from Bulgaria," LABOUR, CEIS, vol. 19(2), pages 303-341, June.
    6. Elizabeth Savoca, 1995. "Controlling for mental health in earnings equations: What do we gain and what do we lose?," Health Economics, John Wiley & Sons, Ltd., vol. 4(5), pages 399-410, September.
    7. Philippe Tessier & François-Charles Wolff, 2005. "Offre de travail et santé en France," Economie & Prévision, La Documentation Française, vol. 168(2), pages 17-41.
    8. Paul R. Flacco & Lester A. Zeager, 1992. "Disabilities, Mandatory Worksite Modifications, and Employment: Some Potential Policy Dilemmas," Public Finance Review, , vol. 20(2), pages 256-270, April.
    9. repec:eee:labchp:v:3:y:1999:i:pc:p:3309-3416 is not listed on IDEAS

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