Impact Of Health On Labor Market Performance

The paper researches the effect of personal health on individual labor market outcome by using symptoms or diseases as instruments in a simultaneous equation s model of endogenous reported health and labor force participation.We appeal to concepts from human capital theory to support a basic model that treats health as a form of human capital in the labor market decision making process.This paper uses the data of CHNS from 1991 to 2006 to do empirical research.The results show that both objective and subjective measure of health explains a significant amount of labor participation.And the analysis shows difference between men and women.