title: The effect of health changes and long-term health on the work activity of older Canadians.
abstract: Using longitudinal data from the Canadian National Population Health Survey (NPHS), we study the relationship between health and employment among older Canadians. We focus on two issues: (1) the possible problems with self-reported health, including endogeneity and measurement error, and (2) the relative importance of health changes and long-term health in the decision to work. We contrast estimates of the impact of health on employment using self-assessed health, an objective health index contained in the NPHS - the HUI3, and a 'purged' health stock measure. Our results suggest that health has an economically significant effect on employment probabilities for Canadian men and women aged 50-64, and that this effect is underestimated by simple estimates based on self-assessed health. We also corroborate recent US and UK findings that changes in health are important in the work decision.
authors.affiliation: Faculty of Pharmacy, University of Toronto, Toronto, Canada.
authors.forename: Doreen Wing Han
authors.initials: DW
authors.lastname: Au
authors.forename: Thomas F
authors.initials: TF
authors.lastname: Crossley
authors.forename: Martin
authors.initials: M
authors.lastname: Schellhorn
mesh_terms: D000368:Aged; D002170:Canada; D004651:Employment / Q000706:statistics & numerical data*; D005260:Female; D006304:Health Status; D006801:Humans; D008137:Longitudinal Studies; D008297:Male; D008875:Middle Aged; D012650:Self Disclosure