Subjective Health Measures, Reporting Errors and Endogeneity in the Relationship between Health and Work

47 Pages Posted: 16 Feb 2004

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: January 2004

Abstract

This paper explores the interrelation between health and work decisions of older workers. For this, two issues are of relevance. Firstly, health and work may be endogenously related because of direct effects of health on work and vice versa, and because of unobservables that may relate observed health and work outcomes. Secondly, social surveys usually contain self-assessed health measures and research indicates that these may be affected by endogenous, state-dependent, reporting behavior. 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: Work, health, endogeneity, subjective health, state-dependent reporting errors

JEL Classification: I12, J14

Suggested Citation

Lindeboom, Maarten and Kerkhofs, Marcel, Subjective Health Measures, Reporting Errors and Endogeneity in the Relationship between Health and Work (January 2004). CEIS Working Paper No. 46. Available at SSRN: https://ssrn.com/abstract=502582 or http://dx.doi.org/10.2139/ssrn.502582

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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