Dynamics of Work-Limitation and Work in Australia

Melbourne Institute Working Paper No. 10/07

Date: March 2007

Author(s):

Umut Oguzoglu

Abstract

This paper examines the impact of self-reported work-limitation on the employment of the Australian working age population. Five consecutive waves of the Household, Income and Labour Dynamics in Australia (HILDA) Survey are used to investigate this relationship. A two-equation dynamic panel data model demonstrates that persistence and unobserved heterogeneity play an important role in the work-limitation reporting and its effect on work. Unobserved factors that jointly drive work-limitation and work are also shown to be crucial, especially for women.

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  • Work-limitations, dynamic panel probit, Maximum Simulated Likelihood