Market Work, Wages, and Men's Health

33 Pages Posted: 17 Oct 2007 Last revised: 14 Apr 2022

See all articles by Robert Haveman

Robert Haveman

University of Wisconsin - Madison - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Mark Stone

University of Wisconsin - Madison

Barbara Wolfe

University of Wisconsin-Madison; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); RSSS-economics; National Bureau of Economic Research (NBER)

Date Written: June 1989

Abstract

In this paper, we investigate the complex interrelationships among worktime, wages and health identified in the Grossman model of the demand for health. We specify a 3-equation simultaneous model designed to capture the tune dependent character of these interrelationships, and estimate the model using 8 years of panel data on 882 males aged 22 to 71. The model is estimated using Hansen's generalized methods of moments imposing a weak set of conditions on the error term covariance structure. Using our data, we estimate simpler models with more restrictive assumptions commonly found in the literature, and find substantial differences between these estimates and those from the simultaneous model. For example, the positive relationship between worktime and health found in other studies disappears when the relevant simultaneities are accounted for. Our simultaneous estimates also suggest that worktime spent in environmentally adverse conditions are inversely related to health status, while job related physical exercise retards health deterioration.

Suggested Citation

Haveman, Robert H. and Stone, Mark and Wolfe, Barbara L., Market Work, Wages, and Men's Health (June 1989). NBER Working Paper No. w3020, Available at SSRN: https://ssrn.com/abstract=463464

Robert H. Haveman (Contact Author)

University of Wisconsin - Madison - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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CESifo (Center for Economic Studies and Ifo Institute)

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Mark Stone

University of Wisconsin - Madison

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Barbara L. Wolfe

University of Wisconsin-Madison ( email )

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IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

RSSS-economics ( email )

Canberra, Australian Capital Territory 2601
Australia

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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