Health shocks, disability and work

Maarten Lindeboom (), Ana Llena-Nozal and Bas van der Klaauw
Authors registered in the RePEc Author Service: Ana Llena-Nozal

Labour Economics, 2016, vol. 43, issue C, 186-200

Abstract: This paper focuses on the relation between health shocks and the onset of a disability and employment outcomes. We estimate an event-history model using data from the British National Child Development Study (NCDS), where accidents causing a unscheduled hospitalization are the measure for unanticipated health shocks. Our results show that experiencing such a health shock substantially increases the likelihood of the onset of a disability, while it does not have direct effects on employment at later ages. This finding is used to simulate the causal effects of the onset of a disability on later employment outcomes. These simulations show that about two-third of the association between disability and employment can be explained by the causal effect of the onset of a disability on employment. The remaining one-third is selection. For men and lower-educated workers the association is mainly explained by the causal effect, while for women selection is more important.

Date: 2016
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:43:y:2016:i:c:p:186-200

DOI: 10.1016/j.labeco.2016.06.010

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