Disentangling the effects of morbidity and life expectancy on labor market outcomes

Using a unique longitudinal dataset tracking the experiences of patients diagnosed with HIV+ disease, this paper develops and estimates a model capable of recovering the effect of revisions in life expectancy on labor market outcomes. The data allow us to estimate the effect of changes in health sta...

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Bibliographic Details
Published in:Health economics 2002-09, Vol.11 (6), p.471-483
Main Author: Auld, M. Christopher
Format: Article
Language:English
Subjects:
Acquired Immunodeficiency Syndrome - blood
Acquired Immunodeficiency Syndrome - economics
Acquired Immunodeficiency Syndrome - epidemiology
Adult
AIDS-Related Opportunistic Infections - blood
AIDS-Related Opportunistic Infections - economics
AIDS-Related Opportunistic Infections - epidemiology
Alberta - epidemiology
bootstrap
CD4 Lymphocyte Count
Economic models
Efficiency
Employment
Employment - economics
Employment - statistics & numerical data
Health
Health economics
Health Status
HIV
Human immunodeficiency virus
Humans
Labor market
labor supply
Labour supply
Life Expectancy
Longitudinal Studies
Middle Aged
Models, Econometric
Morbidity
partial linear model
Probability
Regression Analysis
Risk Factors
Salaries and Fringe Benefits
semiparametric selection
Studies
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Summary:Using a unique longitudinal dataset tracking the experiences of patients diagnosed with HIV+ disease, this paper develops and estimates a model capable of recovering the effect of revisions in life expectancy on labor market outcomes. The data allow us to estimate the effect of changes in health status (as objectively measured by CD4 counts) and the impact of learning that one is HIV+, which we interpret as a negative shock to life expectancy. Both parametric and distribution‐free models robustly indicate that decreases in health have little effect on labor demand but decrease probability of employment. We conclude that, in this sample, negative association between income and health is attributable mostly to the effect of altered incentives induced by changes in life expectancy. Copyright © 2002 John Wiley & Sons, Ltd.
ISSN:1057-9230
1099-1050
DOI:10.1002/hec.753