Diabetes and Labor Market Exits: Evidence from the Health & Retirement Study (HRS)

39 Pages Posted: 22 Apr 2016

See all articles by Pinka Chatterji

Pinka Chatterji

National Bureau of Economic Research (NBER)

Heesoo Joo

State University of New York at Albany - Department of Economics

Kajal Lahiri

State University of New York (SUNY) at Albany, College of Arts and Sciences, Economics

Date Written: March 24, 2016

Abstract

The objective of this paper is to estimate the effect of diabetes on labor market exit using longitudinal data from the 1992-2010 Health and Retirement Study (HRS). We estimate a discrete time hazard model to test whether diabetes affects the hazard of leaving employment among individuals who were working for pay at the age of 55-56. Using a probit model, we also estimate the effect of having undiagnosed or poorly controlled diabetes on the probability of labor market exit two years later. Our results indicate that diabetes is associated with an increased hazard of exiting the labor market for both males, but not for females. This effect persists when we include controls for onset of other health conditions, two of which are documented complications due to diabetes (stroke and heart conditions). We also find diagnosed diabetes with medication use, regardless of whether it is under control, is associated with large negative effects on the likelihood of employment two years later.

Keywords: hazard model, panel data, elderly health, undiagnosed diabetes, gender differential

JEL Classification: J140, J160, J240, I120

Suggested Citation

Chatterji, Pinka and Joo, Heesoo and Lahiri, Kajal, Diabetes and Labor Market Exits: Evidence from the Health & Retirement Study (HRS) (March 24, 2016). CESifo Working Paper Series No. 5832. Available at SSRN: https://ssrn.com/abstract=2768057

Pinka Chatterji (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Heesoo Joo

State University of New York at Albany - Department of Economics ( email )

1400 Washington Avenue
Albany, NY 12222
United States

Kajal Lahiri

State University of New York (SUNY) at Albany, College of Arts and Sciences, Economics ( email )

Department of Economics
1400 Washington Avenue
Albany, NY 12222
United States
518-442 4758 (Phone)
518-442 4736 (Fax)

HOME PAGE: http://www.albany.edu/~klahiri

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