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Compression of Morbidity and the Labor Supply of Older People

[journal article]

Romeu Gordo, Laura

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Abstract This paper tests whether there is evidence of compression of morbidity using HRS data and analyzes the effects of this on the labor supply of older people. We find younger cohorts to suffer less from functional problems than older cohorts at given ages. Furthermore, we observe that instrumentalized disability has a negative effect on labor force participation. According to the cohort analysis and the multivariate analysis, it can be concluded that individuals will be able to work longer because of the delay in the onset of disability problems.
Classification Labor Market Research
Document language English
Publication Year 2009
Page/Pages p. 503-513
Journal Applied Economics, 43 (2009) 4
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)