Estimating Causal Effects of Early Occupational Choice on Later Health: Evidence Using the Psid

29 Pages Posted: 18 Aug 2009 Last revised: 9 Sep 2010

See all articles by Jason M. Fletcher

Jason M. Fletcher

University of Wisconsin - Madison - Robert M. La Follette School of Public Affairs; Yale University - School of Public Health

Jody L. Sindelar

Yale University - School of Public Health; National Bureau of Economic Research (NBER)

Date Written: August 2009

Abstract

In this paper, we provide some of the first empirical evidence of whether early occupational choices are associated with lasting effects on health status, affecting individuals as they age. We take advantage of data on occupational histories available in the Panel Study of Income Dynamics (PSID) to examine this issue. To the PSID data, we merge historical Census data that reflect the labor market conditions when each individual in the PSID made his first occupational choice. These data on labor market conditions (e.g. state-level share of blue collar workers) allow us to instrument for occupational choice in order to alleviate endogeneity bias. We use parental occupation as additional instruments. Since our instruments may have indirect effects on later health, we also control for respondent's pre-labor market health, education and several family and state background characteristics in order to make the instruments more plausibly excludable. We find substantial evidence that a blue collar occupation at labor force entry is associated with decrements to later health status, ceteris paribus. These health effects are larger after controlling for endogeneity and are similar across sets of instruments. We also find differences in the effects of occupation by gender, race, and age.

Suggested Citation

Fletcher, Jason M. and Sindelar, Jody L., Estimating Causal Effects of Early Occupational Choice on Later Health: Evidence Using the Psid (August 2009). NBER Working Paper No. w15256. Available at SSRN: https://ssrn.com/abstract=1454989

Jason M. Fletcher

University of Wisconsin - Madison - Robert M. La Follette School of Public Affairs ( email )

1180 Observatory Drive
Madison, WI 53706-1393
United States

Yale University - School of Public Health ( email )

PO Box 208034
60 College Street
New Haven, CT 06520-8034
United States

Jody L. Sindelar (Contact Author)

Yale University - School of Public Health ( email )

PO Box 208034
60 College Street
New Haven, CT 06520-8034
United States
203-785-5287 (Phone)
203-785-6287 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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