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Subjective Health Assessments and Active Labor Market Participation of Older Men
Social Science Research Network [SSRN] 
Nov. 5, 2008
Excerpt: We use panel data from the US Health and Retirement Study 1992-2002 to estimate the effect of self-assessed health limitations on active labor market participation of men around retirement age. Self-assessments of health and functioning typically introduce an endogeneity bias when studying the effects of health on labor market participation. This results from justification bias, reflecting an individual's tendency to provide answers which 'justify' his labor market activity, and individual-specific heterogeneity in providing subjective evaluations.
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