Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130300
Authors: 
Jones, Melanie
Mavromaras, Kostas G.
Sloane, Peter J.
Wei, Zhang
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9609
Abstract: 
Using longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey (2001-2013) we examine the relationship between the dynamics of work-limiting disability and employment, hours of work, earnings and life satisfaction. We employ two alternative classifications of the dynamic trajectories of disability and, in doing so, are able to explicitly consider the influence of disability exit in addition to examining onset by chronicity and severity. After controlling for unobserved individual heterogeneity, we find that the positive impact of disability exit is smaller in magnitude and shorter-lived than the negative impact of onset. Further, while individuals are found to recover from a one period disability within three years, there is no sign of adaptation even after ten years for those whose disability is chronic, defined as evident for three or more years post-onset, and severe.
Subjects: 
disability
employment
hours of work
earnings
life satisfaction
HILDA
JEL: 
I10
J2
J31
J71
Document Type: 
Working Paper

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