Health and work of the elderly: subjective health measures, reporting errors and endogeneity in the relationship between health and work
Article first published online: 14 APR 2009
Copyright © 2009 John Wiley & Sons, Ltd.
Journal of Applied Econometrics
Volume 24, Issue 6, pages 1024–1046, September/October 2009
How to Cite
Lindeboom, M. and Kerkhofs, M. (2009), Health and work of the elderly: subjective health measures, reporting errors and endogeneity in the relationship between health and work. J. Appl. Econ., 24: 1024–1046. doi: 10.1002/jae.1077
- Issue published online: 23 SEP 2009
- Article first published online: 14 APR 2009
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 causal effects of health on work and vice versa, and because of unobservables that may affect both observed health and work outcomes. Secondly, social surveys usually contain self-assessed health measures and research indicates that these may be subject to endogenous, state-dependent reporting bias. A solution to the ‘Health and Retirement Nexus’ therefore 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 older Dutch males. Copyright © 2009 John Wiley & Sons, Ltd.