Economic determinants and consequences of self-reported work disability

Strong support is found for the hypothesis that economic factors as well as poor health influence the probability that individuals report health conditions limit the amount or kind of work they do.

Abstract

This paper examines the determinants of and behavioral responses to self-reported work disability in samples of older men and women stratified by race. Strong support is found for the hypothesis that economic factors as well as poor health influence the probability that individuals report health conditions limit the amount or kind of work they do. In particular, lower expected wage rates significantly raise the probability of reporting work disablement, controlling for health status and health-related job requirements. The empirical analysis also shows that only a part of the reduced labor supply of disabled individuals is attributable to health conditions. The policy and methodological implications of these findings are discussed.