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Health and Employment amongst Older Workers*

Britton, J; French, E; (2020) Health and Employment amongst Older Workers*. Fiscal Studies , 41 (1) pp. 221-250. 10.1111/1475-5890.12213. Green open access

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Abstract

Health and employment are strongly correlated. This paper reviews the existing evidence and brings in new evidence on the following issues: (a) the measurement of health; (b) the impact of health on employment rather than just the association between health and employment; (c) the mechanisms by which health impacts employment; and (d) the likely effect of recent retirement and disability policy changes in the UK. Although the magnitude of the estimated effect of health on employment varies greatly from study to study, some of this variation is driven by the health measure used. Given our preferred measure, the evidence suggests that 5–10 per cent of the employment decline between ages 50 and 70 is due to declining health in England, with the largest effects among low‐educated men. Most of the effect comes through declining preferences for work and lower productivity when in bad health, although some of the effect is from government‐provided incentives to not work when in bad health, such as from disability benefits.

Type: Article
Title: Health and Employment amongst Older Workers*
Open access status: An open access version is available from UCL Discovery
DOI: 10.1111/1475-5890.12213
Publisher version: https://doi.org/10.1111/1475-5890.12213
Language: English
Additional information: This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited. http://creativecommons.org/licenses/by/4.0/
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10104603
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