Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20547 
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion Papers No. 1281
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
Using longitudinal data from the Canadian National Population Health Survey (NPHS), we study the relationship between health and employment among older Canadians. We focus on two issues: (1) the possible endogeneity of self-reported health, particularly ?justification bias?, and (2) the relative importance of health changes and long-term health in the decision to work. The NPHS contains the HUI3, an ?objective? health index which has been gaining popularity in empirical work. We contrast estimates of the impact of health on employment using self-assessed health, the HUI3, and a ?purged? health measure similar to that employed by Bound et al. (1999) and Disney et al. (2003). A direct test suggests that selfassessed health suffers from justification bias. However, the HUI3 provides estimates that are similar to the ?purged? health measure. We also corroborate recent U.S. and U.K. findings that changes in health are important in the work decision.
Subjects: 
health
health changes
employment
older workers
JEL: 
J26
I12
Document Type: 
Working Paper

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