Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105519
Authors: 
O'Donnell, Owen
Year of Publication: 
1998
Series/Report no.: 
Department of Economics Discussion Paper, University of Kent 9813
Abstract: 
Previous modelling of the impact of disability on employment has failed to allow for a direct effect rendering some individuals capable of work. A model in which both a capacity and a desire for work are necessary conditions for employment is estimated from a sample of British disabled men. Recognition that individuals may be incapable of work helps identify work capacity and leads to a test for errors in reported capacity data. The capacity for work condition is found to be relevant and failure to allow for it results in overestimation of the wage elasticity of employment. The accuracy of self-reported capacity information is rejected.
Subjects: 
Disability
Work Capacity
Employment
Labour Supply
Partial Observability
Reporting Errors
JEL: 
I12
J22
Document Type: 
Working Paper

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