The dynamic effect of disability on work and subjective well-being | Zendy

Melanie Jones | Zendy; Kostas Mavromaras | Zendy; Peter J. Sloane | Zendy; Wei Zhang | Zendy

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The dynamic effect of disability on work and subjective well-being

Author(s) -

Melanie Jones,

Kostas Mavromaras,

Peter J. Sloane,

Wei Zhang

Publication year - 2018

Publication title -

oxford economic papers

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.68

H-Index - 69

eISSN - 1464-3812

pISSN - 0030-7653

DOI - 10.1093/oep/gpy006

Subject(s) - limiting , life satisfaction , medical model of disability , work (physics) , psychology , disability benefits , dynamics (music) , longitudinal data , demographic economics , economics , demography , social psychology , psychiatry , sociology , social security , mechanical engineering , engineering , pedagogy , market economy

Using longitudinal data from the Household, Income, and Labour Dynamics in Australia (HILDA) Survey (2001–2013), we examine the relationship between the dynamics of work-limiting disability, employment, and life satisfaction. By employing two alternative classifications of the dynamic trajectories of disability, we are able to explicitly consider the influence of disability exit in addition to examining onset by chronicity and severity. After controlling for unobserved individual heterogeneity, we find pronounced declines in the probability of employment and life satisfaction at disability onset. Further, while individuals are found to recover rapidly and completely from a one-period disability, there is little evidence of recovery even after 10 years for those whose disability is chronic, defined as evident for three or more years post-onset, and severe.

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