Temporary versus permanent employment: Does health matter?

Gail Pacheco, Dominic Page and Don Webber
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Dominic Page: University of the West of England, Bristol

Working Papers from Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol

Abstract: Health issues may inhibit active participation in the labour market and restrict the types of employment available to an individual. This paper presents an investigation into the influences of mental and physical health on employment type (full time, permanent, fixed term, contract, seasonal and casual) and employment propensity per se. Applications of bivariate probit regression illustrate a complex blend of effects of health on employment propensity and employment type. Being in physical pain does not influence employment propensity but does reduce the probability of being in full-time or permanent employment, with such people being more likely to work casually. In addition to adversely influencing employment propensity, having depression does (not) diminish the probability of being in permanent (full-time) employment. Applications of instrumental variable probit regression across employment type reveal that mental health is exogenous to most types of employment, except permanent. These results revitalize the debate on the need for greater awareness and understanding of the inhibiting effects of health on employment.

Keywords: Mental health; Physical health; Employment propensity; Employment type (search for similar items in EconPapers)
JEL-codes: I1 J29 (search for similar items in EconPapers)
Date: 2012-01-11
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Citations: View citations in EconPapers (1)

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http://www2.uwe.ac.uk/faculties/BBS/BUS/Research/economics2012/1211.pdf

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Journal Article: Temporary Versus Permanent Employment: Does Health Matter? (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:uwe:wpaper:20121211

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