The effect of health on employment transitions of older men

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Abstract
This paper reexamines the effect of health on the labor force behavior of older men using data from the Health and Retirement Study. Multiple measures of health are included in models of labor force behavior in order to estimate the impact of alternative combinations of self-reported status and diagnosed conditions. Models of annual rates of transition among labor force states are estimated. The transitions are changing jobs, exiting employment, and entering employment. A semiparametric random effects estimator is used to model the endogeneity of health, and the sensitivity of the effects of health to controls for unobserved heterogeneity are examined.

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