Jäckle, Robert and Himmler, Oliver (2007): Health and Wages - Panel data estimates considering selection and endogeneity.
Download (313Kb) | Preview
This paper complements previous studies on the effects of health on wages by addressing the problems of unobserved heterogeneity, sample selection, and endogeneity in one comprehensive framework. Using data from the German Socio-Economic Panel (GSOEP) we find the health variable to suffer from measurement error and a number of tests provide evidence that selection corrections are necessary. Good health leads to higher wages for men, while there appears to be no significant effect for women. Contingent on the method of estimation, healthy males are estimated to earn between 1.3% and 7.8% more than those in poor health.
|Item Type:||MPRA Paper|
|Original Title:||Health and Wages - Panel data estimates considering selection and endogeneity|
|Keywords:||health; wages; fixed effects; sample selection; instrumental variables|
|Subjects:||C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C34 - Truncated and Censored Models; Switching Regression Models
J - Labor and Demographic Economics > J4 - Particular Labor Markets
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models; Multiple Variables > C33 - Models with Panel Data; Longitudinal Data; Spatial Time Series
I - Health, Education, and Welfare > I1 - Health
|Depositing User:||Oliver Himmler|
|Date Deposited:||15. Nov 2008 04:11|
|Last Modified:||13. Feb 2013 11:18|
Cai, L. (2007): “Effects of Health on Wages of Australian Men,” Melbourne Institute Working Paper Series 2007/02.
Chamberlain, G. (1984): “Panel data,” in Zvi Griliches and Michael D. Intriligator (eds), Handbook of Econometrics, Volume 2, 1247–1318.
Contoyannis, P., A. M. Jones, and N. Rice (2004): “The dynamics of health in the British Household Panel Survey,” Journal of Applied Econometrics, 19(4), 473–503.
Contoyannis, P., and N. Rice (2001): “The Impact of Health on Wages: Evidence from the British Household Panel Survey,” Empirical Economics, 26, 599–622.
Dustmann, C., and M. E. Rochina-Barrachina (2007): “Selection correction in panel data models: An application to the estimation of females’ wage equations,” Econometrics Journal, 10, 263–293.
Gambin, L. M. (2005): “The Impact of Health on Wages in Europe – Does gender matter?,” HEDG Working Paper, 03.
Grossman, M. (2001): “The Human Capital Model,” in Handbook of Health Economics, ed. by A. J. Culyer, and J. P. Newhouse, vol. 1A, pp. 347–409. Elsevier Science B.V., Amsterdam.
Halliday, T. J., and J. A. Burns (2005): “Heterogeneity, State Dependence and Health,” University of Hawaii at Manoa, Department of Economics Working Paper Series, 3.
Haveman, R., B. Wolfe, B. Kreider, and M. Stone (1994): “MarketWork,Wages, and Men’s Health,” Journal of Health Economics, 13, 163–182.
Heckman, J. J. (1978): “Dummy Endogenous Variables in a Simultaneous Equation System,” Econometrica, 46(4), 931–60.
Kennedy, P. (1984): “Logarithmic Dependent Variables and Prediction Bias,” Oxford Bulletin of Economics and Statistics, 463, 389–392.
Kyriazidou, E. (1997): “Estimation of a panel data sample selection model,” Econometrica, 55, 1335–1364.
Lee, L.-F. (1982): “Health and Wage: A Simultaneous Equation Model with Multiple Discrete Indicators,” International Economic Review, 23(1), 199–221.
Mincer, J. (1958): “Investment in Human Capital and Personal Income Distribution,” Journal of Political Economy, 66(4), 281–302.
Mincer, J. (1974): “Schooling, Experience and Earnings,” New York: National Bureau of Economic Research.
Mundlak, Y. (1978): “On the pooling of time series and cross section data,” Economatrica, 46, 69–85.
Rochina-Barrachina, M. E. (1999): “A new Estimator for Panel Data Sample Selection Models,” Annales d‘Economie et de Statistique, 55/56, 153–181.
Romeu Gordo, L. (2006): “Effects of short- and long-term unemployment on health satisfaction *evidence from German data,” Applied Economics, 38(20), 2335–2350.
Semykina, A. (2007): “Specification Tests in Panel Data Models with Selection,” unpublished manuscript, Michigan State University.
Semykina, A., and J. M. Wooldridge (2006): “Estimating Panel Data Models in the Presence of Endogeneity and Selection: Theory and Application,” unpublished manuscript, Michigan State University.
Stern, S. (1989): “Measuring the Effect of Disability on Labor Force Participation,”The Journal of Human Resources, 24(3), 361–395.
Verbeek, M., and T. Nijman (1992): “Testing for Selectivity Bias in Panel Data Models,” International Economic Review, 33, 681–703.
Wooldridge, J. M. (1995): “Selection correction for panel data models under conditional mean independence assumption,” Journal of Econometrics, 68, 115–132.
Wooldridge, J. M.(2002): Econometric analysis of cross section and panel data. MIT Press, Cambridge and London.