No. 121. DISABILITY AND LABOUR FORCE PARTICIPATION IN GREECE: A MICROECONOMETRIC ANALYSIS

Published in DISCUSSION PAPERS

N.C. Kanellopoulos. 2011.

 

This paper examines the effect of disability upon the decision to participate in the Greek labour market, using data from the European Community Household Panel 1994-2001. A range of dynamic random effects probit models accounting for unobserved heterogeneity, initial conditions and state dependence have been estimated. Results indicate that not accounting for such potential estimation issues tends to overestimate the effect of disability and previous participation upon current participation. In models ignoring dynamics, unobserved heterogeneity and initial conditions the effect of disability varies between 9.4 and 47.4 per cent depending on the level of disability, while when these issues are accounted for the effect of disability is reduced to 5.8 to 20.8 per cent.

 

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