The impact of diabetes on employment in Canada



This paper examines the impact of diabetes on the employment of Canadian males and females ages 15–64. Using data from the National Population Health Survey (1998), it utilizes a recursive bivariate probit approach to take into account the potential endogeneity of diabetes in employment outcomes. The results suggest that treating diabetes as exogenous yields an over-estimation of its impact on male employment. The study finds that diabetes has a significant negative impact on female employment probability, but has no significant impact on that of non-white Canadians. An implication thus is that policy-makers should take endogeneity into account in estimating labor market costs of chronic diseases such as diabetes. Copyright © 2008 John Wiley & Sons, Ltd.