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

Jones, Melanie, Mavromaras, Kostas, Sloane, Peter J. and Wei, Zhang 2018. The dynamic effect of disability on work and subjective well-being. Oxford Economic Papers 70 (3) , pp. 635-657. 10.1093/oep/gpy006

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Abstract

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.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: Oxford University Press (OUP)
ISSN: 0030-7653
Date of First Compliant Deposit: 17 January 2018
Date of Acceptance: 18 December 2017
Last Modified: 09 Jul 2020 15:30
URI: http://orca.cf.ac.uk/id/eprint/107219

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