Does the causal effect of health on employment differ for immigrants and natives?

This paper examines whether a causal effect of health on employment exists and, if so, whether it differs for immigrants and natives and whether such a difference can be attributed to different labour market status. Measuring poor health through information about hospital diagnoses for a number of specific diseases, we estimate bivariate probit models using the general practitioner’s referral behaviour as an instrument for receiving diagnoses. Using Danish administrative data, we find that poor health affects the employment probability negatively for both immigrants and native Danes. For men, the impact of health is largest for immigrants, while for women the effect is very similar. Differences in the distribution of lagged labour market status appear important only in explaining the results for women.Action=1&NewsId=2430&PID=32427#sthash.7uLQonhl.dpuf