Health and Wages - Panel data estimates considering selection and endogeneity

Robert Jäckle and Oliver Himmler ()
Authors registered in the RePEc Author Service: Robert Jaeckle ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper complements previous studies on the effects of health on wages by addressing the problems of unobserved heterogeneity, sample selection, and endogeneity in one comprehensive framework. Using data from the German Socio-Economic Panel (GSOEP) we find the health variable to suffer from measurement error and a number of tests provide evidence that selection corrections are necessary. Good health leads to higher wages for men, while there appears to be no significant effect for women. Contingent on the method of estimation, healthy males are estimated to earn between 1.3% and 7.8% more than those in poor health.

Keywords: health; wages; fixed effects; sample selection; instrumental variables (search for similar items in EconPapers)
JEL-codes: C34 J4 C33 I1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hea and nep-lab
Date: 2007-02, Revised 2008-11
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http://mpra.ub.uni-muenchen.de/11578/

Related works:
Working Paper: Health and Wages - Panel data estimates considering selection and endogeneity (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:11578

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