Definition of Labor Force and the impact of Diabetes on Labor Market Outcomes: in th U.S.

• Main Authors: Hsin-Hsien Wan, 萬星顯
• Other Authors: 胡登淵
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/sqmt4h

碩士 === 淡江大學 === 產業經濟學系碩士班 === 106 === This study mainly investigates the relation between typeII diabetes and employment under various definitions of labor force, and it is separated into three parts. First, it estimates the impact of diabetes on employment using the probit model under exogenous assumption. By comparing various definitions of labor force, it finds that the data which keeps the persons who were unable to work for health reasons is more appropriate, and its coeffeicient estimate is negative and significant. In contrast, it is difficult in finding the expected impact when following the traditional, rigorous definition of labor force. Ignoring those persons who were unable to work for health reasons would underestimate the negative impact of diabetes. The second part of this study is to take the potential endogenous problems of type II diabetes into account by using the bivariate probit models with instrumental variables. The instrumental variable is the variable indicating whether there is at least one close relative suffering from the diabetes or not. We find similar outcomes in both the exogenous probit models and the bivariate probit models with instrumental variables. It finds the expected impact in two definitions of labor force. One is to keep those persons who were unable to work for health reasons. The other is to keep those persons who were unable to work for health reasons and those who were laid off. However, the endogeity test supports the exogenous assumption. Moreover, it considers two types of employment, namely the part-time workers and the full-time workers. Using the trivariate probit model with an instrumental variable, the results show that the negative impact of type II diabetes is negative and significant for the part-time workers.