Journal article

Measuring the Impacts of Health Conditions on Work Incapacity - Evidence from the British Household Panel Survey

William Whittaker, Matt Sutton

SOCIAL POLICY & ADMINISTRATION | WILEY | Published : 2015

Abstract

The UK has experienced substantial increases in both the number of claimants of work incapacity benefit and the proportion of claims for mental health reasons. However, identifying causality between experiencing mental health problems and claiming benefits is complex as claiming disability benefits may be the instigator or result of having a mental health problem. We use longitudinal data from the British Household Panel Survey (1991-2008) to disentangle the relationship between claiming benefits and mental health problems. We model the probability of claiming disability benefits using a dynamic random-effects probit model, which reduces the endogeneity bias in modelling the effects of healt..

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