Ageing workforces, ill-health, and multi-state labour market transitions
© 2020 The Department of Economics, University of Oxford and John Wiley & Sons Ltd We provide novel evidence on the effects of ill-health on the dynamics of labour state transitions by considering retirement as mobility between full-time work, part-time work, self-employment and inactivity...
| Main Authors: | , , |
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| Format: | Journal Article |
| Language: | English |
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Wiley-Blackwell
2020
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| Online Access: | http://hdl.handle.net/20.500.11937/81794 |
| _version_ | 1848764420154458112 |
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| author | Harris, Mark Zhao, X. Zucchelli, E. |
| author_facet | Harris, Mark Zhao, X. Zucchelli, E. |
| author_sort | Harris, Mark |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2020 The Department of Economics, University of Oxford and John Wiley & Sons Ltd
We provide novel evidence on the effects of ill-health on the dynamics of labour state transitions by considering retirement as mobility between full-time work, part-time work, self-employment and inactivity. We employ a dynamic multi-state model which accounts for state dependence and different types of unobservables. Our model allows for both individual heterogeneity and labour-state gravity as well as correlations between labour market states. We estimate this model on rich longitudinal data from the Household, Income and Labour Dynamics in Australia Survey. We find that both ill-health and health shocks greatly increase the probability of leaving full-time employment and moving into inactivity. Simulated dynamic trajectories suggest larger impacts of long-term health conditions than those of a one-off health shock and some evidence of health-driven retirement pathways via part-time work and self-employment. Our findings also indicate that the effects of health changes could be underestimated and the magnitude of true labour market state dependence overestimated if individual effects or labour dynamic transitions are not accounted for in the model. |
| first_indexed | 2025-11-14T11:19:04Z |
| format | Journal Article |
| id | curtin-20.500.11937-81794 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T11:19:04Z |
| publishDate | 2020 |
| publisher | Wiley-Blackwell |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-817942022-08-12T05:34:58Z Ageing workforces, ill-health, and multi-state labour market transitions Harris, Mark Zhao, X. Zucchelli, E. Social Sciences Science & Technology Physical Sciences Economics Social Sciences, Mathematical Methods Statistics & Probability Business & Economics Mathematical Methods In Social Sciences Mathematics FORCE PARTICIPATION SELF-EMPLOYMENT STATE DEPENDENCE EARLY RETIREMENT WORK DISABILITY MODEL HETEROGENEITY INCENTIVES WEALTH © 2020 The Department of Economics, University of Oxford and John Wiley & Sons Ltd We provide novel evidence on the effects of ill-health on the dynamics of labour state transitions by considering retirement as mobility between full-time work, part-time work, self-employment and inactivity. We employ a dynamic multi-state model which accounts for state dependence and different types of unobservables. Our model allows for both individual heterogeneity and labour-state gravity as well as correlations between labour market states. We estimate this model on rich longitudinal data from the Household, Income and Labour Dynamics in Australia Survey. We find that both ill-health and health shocks greatly increase the probability of leaving full-time employment and moving into inactivity. Simulated dynamic trajectories suggest larger impacts of long-term health conditions than those of a one-off health shock and some evidence of health-driven retirement pathways via part-time work and self-employment. Our findings also indicate that the effects of health changes could be underestimated and the magnitude of true labour market state dependence overestimated if individual effects or labour dynamic transitions are not accounted for in the model. 2020 Journal Article http://hdl.handle.net/20.500.11937/81794 10.1111/obes.12379 English Wiley-Blackwell fulltext |
| spellingShingle | Social Sciences Science & Technology Physical Sciences Economics Social Sciences, Mathematical Methods Statistics & Probability Business & Economics Mathematical Methods In Social Sciences Mathematics FORCE PARTICIPATION SELF-EMPLOYMENT STATE DEPENDENCE EARLY RETIREMENT WORK DISABILITY MODEL HETEROGENEITY INCENTIVES WEALTH Harris, Mark Zhao, X. Zucchelli, E. Ageing workforces, ill-health, and multi-state labour market transitions |
| title | Ageing workforces, ill-health, and multi-state labour market transitions |
| title_full | Ageing workforces, ill-health, and multi-state labour market transitions |
| title_fullStr | Ageing workforces, ill-health, and multi-state labour market transitions |
| title_full_unstemmed | Ageing workforces, ill-health, and multi-state labour market transitions |
| title_short | Ageing workforces, ill-health, and multi-state labour market transitions |
| title_sort | ageing workforces, ill-health, and multi-state labour market transitions |
| topic | Social Sciences Science & Technology Physical Sciences Economics Social Sciences, Mathematical Methods Statistics & Probability Business & Economics Mathematical Methods In Social Sciences Mathematics FORCE PARTICIPATION SELF-EMPLOYMENT STATE DEPENDENCE EARLY RETIREMENT WORK DISABILITY MODEL HETEROGENEITY INCENTIVES WEALTH |
| url | http://hdl.handle.net/20.500.11937/81794 |