Ill-health and transitions to part-time work and self-employment among older workers
This paper employs a dynamic multinomial choice framework to provide new evidence on the effect of health on labour market transitions among older individuals. We consider retirement as a multi-state process and examine the effects of ill-health and health shocks on mobility between full-time employ...
| Main Authors: | , , |
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| Format: | Working Paper |
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Centre for Research in Applied Economics
2012
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/34391 |
| _version_ | 1848754210098642944 |
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| author | Zucchelli, E. Harris, Mark Zhao, X. |
| author_facet | Zucchelli, E. Harris, Mark Zhao, X. |
| author_sort | Zucchelli, E. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This paper employs a dynamic multinomial choice framework to provide new evidence on the effect of health on labour market transitions among older individuals. We consider retirement as a multi-state process and examine the effects of ill-health and health shocks on mobility between full-time employment, part-time employment, self-employment and inactivity. In order to disentangle the roles of unobserved individual heterogeneity and true state dependence, we estimate dynamic panel multinomial logit models with random effects, assuming a first order Markov process and accounting for the initial conditions problem. We also account for potential measurement error in the self-assessed health status by building a latent health stock model and employing measures of health shocks. Using data from the first nine waves of the (2001 - 2009) Household, Income and Labour Dynamics in Australia (HILDA) Survey, we find that both ill-health and health shocks greatly increase the probability of leaving full-time employment towards inactivity. We also find evidence of health-driven part-time and self-employment paths into inactivity. |
| first_indexed | 2025-11-14T08:36:47Z |
| format | Working Paper |
| id | curtin-20.500.11937-34391 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:36:47Z |
| publishDate | 2012 |
| publisher | Centre for Research in Applied Economics |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-343912017-01-30T13:43:08Z Ill-health and transitions to part-time work and self-employment among older workers Zucchelli, E. Harris, Mark Zhao, X. ill-health labour transitions dynamic multinomial choice models health shocks This paper employs a dynamic multinomial choice framework to provide new evidence on the effect of health on labour market transitions among older individuals. We consider retirement as a multi-state process and examine the effects of ill-health and health shocks on mobility between full-time employment, part-time employment, self-employment and inactivity. In order to disentangle the roles of unobserved individual heterogeneity and true state dependence, we estimate dynamic panel multinomial logit models with random effects, assuming a first order Markov process and accounting for the initial conditions problem. We also account for potential measurement error in the self-assessed health status by building a latent health stock model and employing measures of health shocks. Using data from the first nine waves of the (2001 - 2009) Household, Income and Labour Dynamics in Australia (HILDA) Survey, we find that both ill-health and health shocks greatly increase the probability of leaving full-time employment towards inactivity. We also find evidence of health-driven part-time and self-employment paths into inactivity. 2012 Working Paper http://hdl.handle.net/20.500.11937/34391 Centre for Research in Applied Economics fulltext |
| spellingShingle | ill-health labour transitions dynamic multinomial choice models health shocks Zucchelli, E. Harris, Mark Zhao, X. Ill-health and transitions to part-time work and self-employment among older workers |
| title | Ill-health and transitions to part-time work and self-employment among older workers |
| title_full | Ill-health and transitions to part-time work and self-employment among older workers |
| title_fullStr | Ill-health and transitions to part-time work and self-employment among older workers |
| title_full_unstemmed | Ill-health and transitions to part-time work and self-employment among older workers |
| title_short | Ill-health and transitions to part-time work and self-employment among older workers |
| title_sort | ill-health and transitions to part-time work and self-employment among older workers |
| topic | ill-health labour transitions dynamic multinomial choice models health shocks |
| url | http://hdl.handle.net/20.500.11937/34391 |