Health and Labour Force Participation: the Case-study of Russian Working Age Population

Student: Solonin Maksim

Supervisor: Ekaterina Aleksandrova

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Final Grade: 9

Year of Graduation: 2018

The effect of health on labour force participation is undisputed. This research is assuming the existence of endogeneity of health, which results from the reverse effect of labour force participation on health, justification bias and unobserved factors. The relationship between health and labour force participation of the Russian population is analysed using simultaneous equation modelling. Data from Russia Longitudinal Monitoring Survey - Higher School of Economics (RLMS-HSE) is applied for 2004 - 2016. Models are estimated separately for males and females. A significant positive effect of health on labour force participation is confirmed. Health lag proved to be significant and has a positive influence on labour force participation. The reverse effect of labour force participation on health is also found. It demonstrates positive influence for males and negative for females.

Full text (added May 17, 2018)

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