View Related Documents

Abstract

Our analysis is based on the 2008 Athens Area Study and exploits detailed information regarding health impairments and labour market outcomes for Greek males. Distinguishing between healthy and heath-impaired employees who have or do not have work limitations, the unobserved productivity effect of health is separated from discrimination. We then estimate a regression model that includes terms to correct for employment selection and endogenous stratification of self-reported health condition. A penalty for productivity limitation exists. Evidence of wage discrimination is also found. Both findings are statistically significant and highlight the necessity for instituting active policies against unequal treatment.

Keywords  Ill-health - Wage discrimination - Labour market participation - Selection model - Endogenous switching model

JEL Classification  I1 - J2 - J3

Fulltext Preview

Image of the first page of the fulltext document