Health effects on labour market exits and entries

García-Gómeza, P, Andrew Michael Jones () and N Rice

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

Abstract: This paper analyses the role of health on exits out of and entries into employment using data from the first twelve waves of the British Household Panel Survey (1991-2002). We use discretetime duration models to estimate the effect of health on the hazard of becoming non-employed and on the hazard of becoming employed. The results show that general health, measured by a variable that captures health limitations and by a constructed latent health index, affects entries into and exits out of employment; the effects being higher for men than for women. Moreover, results suggest that changes in mental health status influences only the hazard of nonemployment for the stock sample of workers. The results are robust to different definitions of employment, and to the exclusion of older workers from the analysis.

Keywords: health; health shocks; discrete-time hazard models; employment; BHPS (search for similar items in EconPapers)
JEL-codes: I1 C41 J60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-hea and nep-lab
Date: 2008-03
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Persistent link: http://EconPapers.repec.org/RePEc:yor:hectdg:08/03

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