The Dynamics of Health, Employment and Working Hours

Thierry Kamionka () and Pauline Leveneur
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Thierry Kamionka: CNRS - Centre National de la Recherche Scientifique, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, IP Paris - Institut Polytechnique de Paris
Pauline Leveneur: CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, IP Paris - Institut Polytechnique de Paris

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Abstract: We investigate interactions between individual's position in the labor market and health status. We jointly model health, employment and working hours using a dynamic model. We estimate a dynamic multivariate model with random effects for the period going from 1991 to 2009 and using data from the British Household Panel Survey (BHPS). Instrumental variables are used. We consider interactions of the error terms of the model using a vector autoregressive process of the order 1. A shock on one component of the error term can have an impact on the distribution of the error term the next period of time. Individual effects-one for each equation-can be correlated. The model is estimated using simulated maximum likelihood estimator. We consider the initial conditions problem. We find that joint dynamics of health and employment is determined by the interactions of their past realizations as well as by the individual's socioeconomic characteristics.

Keywords: Employment dynamics; Self-assessed health; Working hours; General physician visits; Panel data; IV estimation (search for similar items in EconPapers)
Date: 2021-07-29
New Economics Papers: this item is included in nep-eur and nep-isf
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