Show simple item record

dc.contributor.authorZucchelli, E.
dc.contributor.authorHarris, Mark
dc.contributor.authorZhao, X.
dc.identifier.citationZucchelli, Eugenio and Harris, Mark and Zhao, Xueyan. 2012. Ill-health and transitions to part-time work and self-employment among older workers, Centre for Research in Applied Economics Working Paper Series: no. 03032012, Curtin University of Technology, School of Economics and Finance.

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.

dc.publisherCentre for Research in Applied Economics
dc.subjectlabour transitions
dc.subjectdynamic multinomial choice models
dc.subjecthealth shocks
dc.titleIll-health and transitions to part-time work and self-employment among older workers
dc.typeWorking Paper
dcterms.source.seriesCentre for Research in Applied Economics Working Paper Series
curtin.departmentSchool of Economics and Finance
curtin.accessStatusOpen access

Files in this item


This item appears in the following Collection(s)

Show simple item record