Dynamics in Health and Employment: Evidence from Indonesia

37 Pages Posted: 10 Oct 2016

See all articles by Subha Mani

Subha Mani

Fordham University - Fordham College at Rose Hill

Sophie Mitra

Fordham University

Usha Sambamoorthi

West Virginia University

Abstract

This paper examines the consequences of disability, identifying for the first time, the separate impacts of onsets and recoveries from disability on both employment status and hours worked using panel data from Indonesia. We find that changes in physical functioning have no affect hours worked among the employed. However, we find that onsets of physical limitations lead to an increase in the probability of leaving employment, while recoveries increase the probability of returning to work. We also find a larger effect among self-employed workers compared to salaried workers. These results overall point towards a need for social protection policies with a focus on health, disability, and employment in Indonesia.

Keywords: health, disability, aging, employment, hours worked, Indonesia

JEL Classification: I12, J32, J24

Suggested Citation

Mani, Subha and Mitra, Sophie and Sambamoorthi, Usha, Dynamics in Health and Employment: Evidence from Indonesia. IZA Discussion Paper No. 10256. Available at SSRN: https://ssrn.com/abstract=2849741

Subha Mani (Contact Author)

Fordham University - Fordham College at Rose Hill ( email )

United States

Sophie Mitra

Fordham University ( email )

441 East Fordham road
Bronx, NY 10458
United States

HOME PAGE: http://www.fordham.edu/economics/mitra

Usha Sambamoorthi

West Virginia University

PO Box 6025
Morgantown, WV 26506
United States

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