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The impact of health on wages in Europe – does gender matter?

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  • Lynn M Gambin

Abstract

The impact of income and earnings on health has been well-examined in the literature while the impact of health on wages has been far less studied. Even rarer in previous work is the possible difference between the influences of health on wages for men versus women. As there is such a divergence between men and women in developed countries regarding both wages and health, studying the interaction of health and wages and how the relationship differs by gender is an important addition to our understanding of the complex relationship between health and labour market outcomes. The analysis draws on individual level data from up to eight waves of the European Community Household Panel (ECHP). Estimation procedures are applied to unbalanced panels from 14 different countries. The samples consist of employed adults aged 24 to 64 years. The data is used in estimation of Mincer-type wage functions where the natural logarithm of an individual’s hourly wage is function of a number of individual specific characteristics such as age, education, work experience, type of job, and health. Two health variables are included: self-assessed health status and an indicator of chronic illness or disability. The first estimates are obtained from pooled ordinary least squares. Further estimates are obtained from random effects and fixed effects panel models. A genderrelated difference in the association between health and wages has been found in several of the countries examined however; these differences are not the same in magnitude. For a number of countries, there appears to be no significant gender difference. Overall, self-assessed health has greater effects on men’s wages than women’s, while chronic illness appears to be more significant for women. The largest “gender-gap” seems to exist in France, Portugal, Spain and the United Kingdom.

Suggested Citation

  • Lynn M Gambin, 2005. "The impact of health on wages in Europe – does gender matter?," Health, Econometrics and Data Group (HEDG) Working Papers 05/03, HEDG, c/o Department of Economics, University of York.
    • Handle: RePEc:yor:hectdg:05/03
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    Citations

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    Cited by:

    1. Andrew M. Jones & Eddy Van Doorslaer & Teresa Bago D’Uva & Silvia Balia & Lynn Gambin & Cristina Hernández Quevedo & Xander Koolman & Nigel Rice, 2006. "Health and Wealth: Empirical Findings and Political Consequences," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(s1), pages 93-112, May.
    2. Robert Jäckle & Oliver Himmler, 2010. "Health and Wages: Panel Data Estimates Considering Selection and Endogeneity," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).
    3. Oliver Fritz & Peter Mayerhofer & Reinhard Haller & Gerhard Streicher & Florian Bachner & Herwig Ostermann, 2013. "Die regionalwirtschaftlichen Effekte der österreichischen Krankenanstalten," WIFO Studies, WIFO, number 46672.
    4. Maite Blázquez & Elena Cottini & Ainhoa Herrarte, 2014. "The socioeconomic gradient in health: how important is material deprivation?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 239-264, June.
    5. Ana Rodriguez-Alvarez & César Rodriguez-Gutierrez, 2018. "The impact of health on wages: evidence for Europe," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(8), pages 1173-1187, November.
    6. Kartseva, M. & Kuznetsova, P., 2022. "Stay healthy - will the rest follow? The impact of health on wages in Russia," Journal of the New Economic Association, New Economic Association, vol. 57(5), pages 55-70.

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