Tp. Schultz et A. Tansel, WAGE AND LABOR SUPPLY EFFECTS OF ILLNESS IN COTE-DIVOIRE AND GHANA - INSTRUMENTAL VARIABLE ESTIMATES FOR DAYS DISABLED, Journal of development economics, 53(2), 1997, pp. 251-286
Sickness should make individuals less productive, but there are proble
ms in measuring this effect. First, how is adult morbidity measured in
a household survey? Second, how is the impact of morbidity on product
ivity inferred, if earning is partly used to improve health? Self-repo
rted functional activity limitation due to illness is considered an in
dicator of morbidity for wage earners and self employed people. To dea
l with both the measurement and joint determination problems, an instr
umental variable estimation approach is used, where local food prices
and health services instrument for disability days that reduce wages b
y at least 10% and hours by 3% or more. (C) 1997 Elsevier Science B.V.