Simultaneous causality between health status and employment status within the population aged 30-59 in France

Thomas Barnay (1, 2) , François Legendre (1, 2)

1 TEPP - Travail, Emploi et Politiques Publiques
2 ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique

Economic literature clearly establishes the link between socio-economic status, good health and a high level of education. Health status also appears to be a determining factor in an individual's present and future preferences (Disney et al., 2006). The relationship between health status and employment status is the subject of numerous research studies and can be apprehended from the principle of double causality: healthy worker effect and reverse causality (Currie and Madrian, 1999). We focus on these both noncontradictory and potentially simultaneous working assumptions. The aim of this work is to simultaneously measure the effects of health-related selfselection on employment status and the reverse causality effect within the population aged 30-59 in France by using an original method of SBOP (Simultaneous Bi-Ordered Probit Model). We organize the paper as follows. In a first section, we present a literature review. The methodology and econometric strategy are developed in a second section. We present our findings and discussion in a section 4. Then we conclude in a last section.

Mots clés: (Simultaneous Bi-Ordered Probit Model; good health; education

Domaines: Economies et finances

Thomas Barnay, François Legendre. Simultaneous causality between health status and employment status within the population aged 30-59 in France. 2012. ⟨halshs-00856217⟩