Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Lam says tightening global labor market good for American workers

Johnston says e-cigs may reverse two-decades of progress on smoking reduction

Mueller-Smith finds incarceration increases the likelihood of committing more, and more serious, crimes

Highlights

Bob Willis awarded 2015 Jacob Mincer Award for Lifetime Contributions to the Field of Labor Economics

David Lam is new director of Institute for Social Research

Elizabeth Bruch wins Robert Merton Prize for paper in analytic sociology

Elizabeth Bruch wins ASA award for paper in mathematical sociology

Next Brown Bag

PSC Brown Bags will be back fall 2015


John Bound photo

Health, Economic Resources and the Work Decisions of Older Men

Publication Abstract

Download PDF versionBound, John, Todd R. Stinebrickner, and Timothy A. Waidmann. 2007. "Health, Economic Resources and the Work Decisions of Older Men." PSC Research Report No. 07-630. November 2007.

In this paper, we specify a dynamic programming model that addresses the interplay among health, financial resources, and the labor market behavior of men in the later part of their working lives. Unlike previous work which has typically used self reported health of disability status as a proxy for health status, we model health as a latent variable, using self reported disability status as an indicator of this latent construct. Our model is explicitly designed to account for the possibility that the reporting of disability may be endogenous to the labor market behavior we are studying. The model is estimated using data from the Health and Retirement Study. We compare results based on our model to results based on models that treat health in the typical way, and find large differences in the estimated effect of health on behavior. While estimates based on our model suggest that health has a large impact on behavior, the estimates suggest a substantially smaller role for health than we find when using standard techniques. We use our model to simulate the impact on behavior of raising the normal retirement age, eliminating early retirement altogether and eliminating the Social Security Disability Insurance program.

Browse | Search : All Pubs | Next