AIAS Lunch Seminar 26 maart Adriaan Kalwij - Utrecht University

‘What do wages add to the health-employment nexus? Evidence from older European workers’

h3.Adriaan Kalwij

Day: Thursday 26 March 2015
Time: 12.15 – 13.15 hrs.
Location: AIAS, 2nd floor, G building, Nieuwe Prinsengracht 130, Amsterdam
Registration: Please send an email, preferably before Wednesday 25 March, 12.00 hrs. to register.
A sandwich will then be provided.


We explore the role in the health-employment nexus of the wage rates of older workers by using individual-level panel data from the Survey of Health, Ageing, and Retirement in Europe to estimate a system of equations for health, wages, and employment. We find that men (women) who are in relatively better health (measured by a one-unit or a 0.8 standard deviation increase in a health index) have, on average, a 7 percent higher hourly wage rate, which results (at most) in a 2 (3) percentage points higher employment probability. We also show a direct impact of health on employment: men (women) in relatively better health have an 18 (15) percentage points higher employment probability. As regards differences between European countries, our findings indicate that for virtually all country groups, the mediating role of wages in the health-employment nexus is relatively small while the direct impact of health on employment is relatively large and rather similar. Overall, our findings suggest only a minor role for disability income policies likes wage subsidies to encourage the employment of (older) workers with health limitations, but an instrumental role for policy aimed at helping employers accommodate these workers on the job and keep them employed at older ages.

The next lunch seminar 9 April

Spillovers and conflict in wage bargaining: experimental evidence
Alex Lehr, Jana Vyrastekova, Agnes Akkerman, René Torenvlied
Radboud, Radboud, VU/RUG/Radboud, Twente University

Click here for all the AIAS lunch seminars from January – July 2015

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