POOR AND SICK: ESTIMATING THE RELATIONSHIP BETWEEN HOUSEHOLD INCOME AND HEALTH

This study evaluates the effect of the individual's household income on their health at the later stages of working life. A structural equation model is utilized in order to derive a composite and continuous index of the latent health status from qualitative health status indicators. The endogenous relationship between health status and household income status is taken into account by using IV estimators. The findings reveal a significant effect of individual household income on health before and after endogeneity is taken into account as well as a host of other factors known to influence health, including hereditary factors and the individual's locus of control. Importantly, it is also shown that the childhood socioeconomic position of the individual has long lasting effects on health as it appears to play a significant role in determining health during the later stages of working life.     

PROMOTIONS, JOB SENIORITY, AND PRODUCT DEMAND EFFECTS ON EARNINGS

This paper investigates the relationship between promotion status,job tenure, product demand, and earnings utilising a matchedemployer-employee sample which gives direct information on individuals'promotion prospects. Promotion status is modelled as an endogenousvariable, subject to an initial job choice. Then the effectof job tenure and product demand on earnings level is investigated.It is found that the earnings of the individuals employed injobs with promotion prospects are not only higher compared withthe remainder but also unaffected by any decrease in productdemand.     

LABOUR MARKET SEGMENTATION: WAGE DIFFERENTIALS AND HYSTERESIS EFFECTS*

Competitive labour market analysis proposes that an individual's human capital endowment is the main mechanism for pay determination. This study develops a model to highlight hysteresis effects on either investment in physical capital for firms or investment in human capital for workers on wage differentials.     

Diferencias de satisfacción con el trabajo en Europa según nivel salarial

Los datos de seis olas (1996–2001) del Panel de Hogares de la Unión Europea (PHOGUE) indican que los trabajadores que cobran salarios bajos están mucho menos contentos que los que perciben una remuneración alta en el sur de Europa, si bien no ocurre lo mismo en los países del norte. Los empleos europeos de remuneración modesta no son forzosamente malos, aunque sí lo son en algunos países donde un sector de los trabajadores sufre de lleno el doble infortunio del trabajo mediocre con salario bajo. Las diferencias nacionales obedecen a las características propias de la transacción entre flexibilidad y seguridad, por lo que es esencial impulsar políticas que mejoren la calidad del trabajo.