The impact of diabetes on employment: genetic IVs in a bivariate probit

Health Econ. 2005 May;14(5):537-44. doi: 10.1002/hec.942.


Diabetes has been shown to have a detrimental impact on employment and labor market productivity, which results in lost work days and higher mortality/disability. This study utilizes data from the Border Epidemiologic Study on Aging to analyze the endogeneity of diabetes in an employment model. We use family history of diabetes as genetic instrumental variables. We show that assuming that diabetes is an exogenous variable results in an overestimate (underestimate) of the negative impact of diabetes on female (male) employment. Our results are particularly relevant in the case of populations where genetic predisposition has an important role in the etiology of diabetes.

Publication types

  • Research Support, N.I.H., Extramural
  • Research Support, Non-U.S. Gov't
  • Research Support, U.S. Gov't, P.H.S.

MeSH terms

  • Absenteeism
  • African Americans / genetics
  • African Americans / statistics & numerical data
  • Aged
  • Cost of Illness*
  • Diabetes Mellitus / economics
  • Diabetes Mellitus / ethnology*
  • Diabetes Mellitus / genetics*
  • Efficiency
  • Employment / statistics & numerical data*
  • Female
  • Humans
  • Male
  • Mexican Americans / genetics*
  • Mexican Americans / statistics & numerical data
  • Middle Aged
  • Models, Statistical
  • Poverty / economics
  • Poverty / ethnology
  • Texas / epidemiology