Compression of morbidity and the labour supply of older people

Laura Romeu Gordo ()

Applied Economics, 2011, vol. 43, issue 4, pages 503-513

Abstract: This article tests whether there is evidence of compression of morbidity using Health and Retirement Study (HRS) data and analyses the effects of this on the labour supply of older people. We find younger cohorts to suffer less from functional problems than older cohorts at given ages. Furthermore, we observe that instrumentalized disability has a negative effect on labour force participation. According to the cohort analysis and the multivariate analysis, it can be concluded that individuals will be able to work longer because of the delay in the onset of disability problems.

Date: 2011
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Working Paper: Compression of morbidity and the labor supply of older people (2006)
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