Health Capital and Human Capital as Explanations for Health-Related Wage Disparities

Donna Gilleskie and Denise Hoffman

Journal of Human Capital, 2014, vol. 8, issue 3, 235 - 279

Abstract: We use a dynamic modeling strategy to evaluate two potential avenues through which health differences generate a wage gap: directly through reductions in health capital and indirectly through employment transitions that reduce human capital (specifically, occupation and employer tenure). Our results suggest that male workers with a moderate disability are 23 percent more likely to change occupations or employers than nondisabled men. Compared to those who do not make a transition, workers with a moderate disability who change occupations and employers experience an immediate $0.30 decline in hourly wages on top of a $0.57 decline associated with the disability onset.

Date: 2014
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