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The impact of diabetes on employment: genetic IVs in a bivariate probit
Author(s) -
Shelton Brown H.,
Pagán José A.,
Bastida Elena
Publication year - 2005
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.942
Subject(s) - endogeneity , diabetes mellitus , instrumental variable , bivariate analysis , probit model , productivity , multivariate probit model , economics , genetic predisposition , medicine , demographic economics , demography , econometrics , endocrinology , statistics , disease , economic growth , mathematics , sociology
Diabetes has been shown to have a detrimental impact on employment and labor market productivity, which results in lost work days and higher mortality/disability. This study utilizes data from the Border Epidemiologic Study on Aging to analyze the endogeneity of diabetes in an employment model. We use family history of diabetes as genetic instrumental variables. We show that assuming that diabetes is an exogenous variable results in an overestimate (underestimate) of the negative impact of diabetes on female (male) employment. Our results are particularly relevant in the case of populations where genetic predisposition has an important role in the etiology of diabetes. Copyright © 2004 John Wiley & Sons, Ltd.