Health and Work of the Elderly

Tinbergen Institute Working Paper No. TI 02-025/3

44 Pages Posted: 26 Mar 2002

See all articles by Maarten Lindeboom

Maarten Lindeboom

Vrije Universiteit Amsterdam; Tinbergen Institute Amsterdam; IZA Institute of Labor Economics

Marcel Kerkhofs

Tilburg University - OSA Institute for Labour Studies

Date Written: 2002

Abstract

This paper aims to exp1ore the interre1ation between hea1th and work decisions of e1der1y workers, taking the various ways in which hea1th and work can influence each other exp1icitly into account. For this, two issues are of re1evance. Se1f-assessed health measures are usually at hand in empirical analyses and research indicates that these may be affected by endogenous, state dependent, reporting behavior. Furthermore, even if an objective health measure is used, it is not likely to be strictly exogenous to labor market status or labor income. Health and labor market variables are correlated because of unobserved individual-specific characteristics (e.g., investments in human capital and health capital). Moreover, one's labor market status is expected to have a (reverse) causal effect on health. A solution to the "Health and Retirement Nexus" requires an integrated model for work decisions, health production and health reporting mechanisms. We formulate such a model and estimate it on a longitudinal dataset of Dutch elderly.

Keywords: Retirement, health, endogeneity, state dependent reporting errors

JEL Classification: I12, J14

Suggested Citation

Lindeboom, Maarten and Kerkhofs, Marcel, Health and Work of the Elderly (2002). Tinbergen Institute Working Paper No. TI 02-025/3. Available at SSRN: https://ssrn.com/abstract=304339 or http://dx.doi.org/10.2139/ssrn.304339

Maarten Lindeboom (Contact Author)

Vrije Universiteit Amsterdam ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6033 (Phone)
+31 20 444 6020 (Fax)

Tinbergen Institute Amsterdam

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Marcel Kerkhofs

Tilburg University - OSA Institute for Labour Studies ( email )

Postbus 90153
Tilburg, DC 5000 LE
Netherlands

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