The effect of health changes and long-term health on the work activity of older Canadians.

Abstract:

:Using longitudinal data from the Canadian National Population Health Survey (NPHS), we study the relationship between health and employment among older Canadians. We focus on two issues: (1) the possible problems with self-reported health, including endogeneity and measurement error, and (2) the relative importance of health changes and long-term health in the decision to work. We contrast estimates of the impact of health on employment using self-assessed health, an objective health index contained in the NPHS - the HUI3, and a 'purged' health stock measure. Our results suggest that health has an economically significant effect on employment probabilities for Canadian men and women aged 50-64, and that this effect is underestimated by simple estimates based on self-assessed health. We also corroborate recent US and UK findings that changes in health are important in the work decision.

journal_name

Health Econ

journal_title

Health economics

authors

Au DW,Crossley TF,Schellhorn M

doi

10.1002/hec.1051

keywords:

subject

Has Abstract

pub_date

2005-10-01 00:00:00

pages

999-1018

issue

10

eissn

1057-9230

issn

1099-1050

journal_volume

14

pub_type

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