Work Disability, Work, Work Disability, Work, and Justification and Justification

Bias in Europe and the USBias in Europe and the US

Arie Kapteyn (RAND)

James P. Smith (RAND)

Arthur van Soest (Netspar, Tilburg University)

3MC 2 6/28/08

OverviewOverview

MotivationMotivation

Anchoring vignettes, justification biasAnchoring vignettes, justification bias

Data (HRS & SHARE)Data (HRS & SHARE)

Model for work disability, justification bias, and Model for work disability, justification bias, and employmentemployment

Estimation and simulation resultsEstimation and simulation results

Conclusions Conclusions

3MC 3 6/28/08

MotivationMotivation

Labor force participation of older workers is policy Labor force participation of older workers is policy relevantrelevant

Health is a main reason for not participating Health is a main reason for not participating

Self-reported work disability is a summary measure of Self-reported work disability is a summary measure of work-related health…work-related health…

But has problems: But has problems:

Comparability across countriesComparability across countries

Justification biasJustification bias

Anchoring vignettes can be used to tackle these problemsAnchoring vignettes can be used to tackle these problems

3MC 4 6/28/08

This paper…This paper…

Demonstrates that anchoring vignettes can be used to analyze Demonstrates that anchoring vignettes can be used to analyze justification biasjustification bias

Uses data on work disability self-reports, work disability vignette Uses data on work disability self-reports, work disability vignette evaluations, and employment status from SHARE 2004 and HRS evaluations, and employment status from SHARE 2004 and HRS 20042004

Introduces an econometric model which extends the hopit model Introduces an econometric model which extends the hopit model with an employment equation and accounts forwith an employment equation and accounts for

an effect of employment status on response an effect of employment status on response scales scales and reported work disabilityand reported work disability

an effect of work disability on employmentan effect of work disability on employment

Presents estimates of this model for the US and 8 EU countries Presents estimates of this model for the US and 8 EU countries

3MC 5 6/28/08

Self report of work disabilitySelf report of work disability

““Do you have any impairment or health problem that Do you have any impairment or health problem that limits the kind or amount of work you can do?”limits the kind or amount of work you can do?”

Response categories:Response categories:

1.1. NoneNone

2.2. MildMild

3.3. ModerateModerate

4.4. SevereSevere

5.5. Extreme/Cannot Do Extreme/Cannot Do

3MC 6 6/28/08

VignettesVignettes

Example (affect): Example (affect):

Henriette generally enjoys her work. She gets depressed Henriette generally enjoys her work. She gets depressed every 3 weeks for a day or two and loses interest in every 3 weeks for a day or two and loses interest in what she usually enjoys but is able to carry on with what she usually enjoys but is able to carry on with her day-to-day activities on the job.her day-to-day activities on the job.

Does Henriette have any impairment or health problem Does Henriette have any impairment or health problem that limits the kind or amount of work she can do?”that limits the kind or amount of work she can do?”

None, Mild, Moderate, Severe, or Extreme/Cannot Do? None, Mild, Moderate, Severe, or Extreme/Cannot Do?

3MC 7 6/28/08

More examplesMore examples

Pain Vignette: Pain Vignette:

Catherine suffers from back pain that causes stiffness in Catherine suffers from back pain that causes stiffness in her back especially at work but is relieved with low her back especially at work but is relieved with low doses of medication. She does not have any pains doses of medication. She does not have any pains other than this generalized discomfort.other than this generalized discomfort.

Cardio Vascular Disease Vignette: Cardio Vascular Disease Vignette:

Norbert has had heart problems in the past and he has Norbert has had heart problems in the past and he has been told to watch his cholesterol level. Sometimes if been told to watch his cholesterol level. Sometimes if he feels stressed at work he feels pain in his chest he feels stressed at work he feels pain in his chest and occasionally in his arms.and occasionally in his arms.

We work with nine vignettes: three on pain, three on We work with nine vignettes: three on pain, three on affect, three on CVDaffect, three on CVD

3MC 8 6/28/08

How Do Vignettes Work?How Do Vignettes Work?

None

Extreme

Resp. 1

John 1

Mary 1

Liam 1

3MC 9 6/28/08

How Do Vignettes Work: Differential Item How Do Vignettes Work: Differential Item Functioning (DIF)Functioning (DIF)

None

Extreme

Resp. 1

John 1

Mary 1

Liam 1

None

Extreme

Resp. 2John 2

Mary 2 Liam 2

3MC 10 6/28/08

How Do Vignettes Work: Adjusting for DIFHow Do Vignettes Work: Adjusting for DIF

None

Extreme

Resp. 1

John 1

Mary 1

Liam 1

None

Extreme

Resp. 2John 2

Mary 2 Liam 2

None

Extreme

Resp. 2John 2

Mary 2

Liam 2

3MC 11 6/28/08

The dataThe data

For a subset of counties that agreed to participate, For a subset of counties that agreed to participate, SHARE wave 1 in 2004 included a set of vignette SHARE wave 1 in 2004 included a set of vignette questions on general health status and on work limiting questions on general health status and on work limiting disabilities as part of a drop-off questionnaire for a disabilities as part of a drop-off questionnaire for a random subsample of the 50+ population.random subsample of the 50+ population.

The eight SHARE countries that agreed to participate in The eight SHARE countries that agreed to participate in the drop-off containing vignette questions were the drop-off containing vignette questions were Germany, France, Spain, Belgium, Greece, Italy, the Germany, France, Spain, Belgium, Greece, Italy, the Netherlands, and Sweden. Netherlands, and Sweden.

HRS 2004 administered the same vignettes, in an HRS 2004 administered the same vignettes, in an experimental module administered to a random experimental module administered to a random subsample of the 50+ population in the subsample of the 50+ population in the USUS

3MC 12 6/28/08

Example: pain vignette 1 [Catherine]Example: pain vignette 1 [Catherine]

0%

20%

40%

60%

80%

100%

extreme

severe

moderate

mild

none

3MC 13 6/28/08

Red is toughRed is tough; ; Blue is softBlue is soft

Rank correlations:Rank correlations: (1,2) = 0.44; (1,3) = 0.06; (2,3) = -0.33(1,2) = 0.44; (1,3) = 0.06; (2,3) = -0.33

DE ES EL I NL S F B US EUpain 1none,mild 10.9 5.5 12.1 13.4 6.6 6 10.7 7.7 10.1 10.1severe,extreme 54.1 72 61.9 56.4 64.8 80 48.6 60.7 55 58.7pain 2none,mild 29 18.2 31.6 38.1 58.9 10.4 38.6 47.7 77.9 32.8severe,extreme 16 36.9 20.4 13.9 11.2 54 8.7 10.5 3.4 18.7pain 3none,mild 7.5 1.9 7.8 14.4 4.9 11.4 5.8 7.2 4.9 7.9severe,extreme 70.4 72.7 68.4 51.9 59.3 51.5 68.5 59.9 74.1 64.5Average rank 4.8 8.3 4.8 3.0 5.0 6.3 3.8 4.3 4.3

3MC 14 6/28/08

Correlations between rankingsCorrelations between rankings

Correlations between rankings within domains Pain Affect CVD vignette 1 and 2 0.44 0.43 0.51 vignette 1 and 3 0.06 0.45 0.89 vignette 2 and 3 -0.33 0.72 0.47

Correlations of average rankings across domains correlation between rank averages of pain and affect 0.69 correlation between rank averages of pain and CVD 0.57 correlation between rank averages of affect and CVD 0.76

3MC 15 6/28/08

A ranking of toughnessA ranking of toughness

Grand Average Rank

0

1

2

3

4

5

6

7

8

9

Grand Average Rank

3MC 16 6/28/08

Toughness and employment protectionToughness and employment protection

Rank version 1 version 2Spain 8 3.1 3.1Greece 6.7 2.8 2.9Sweden 6.7 2.2 2.6Germany 5 2.2 2.5F 4.9 3 2.9Belgium 3.9 2.2 2.5Netherlands 3.9 2.1 2.3Italy 3.1 3.1 3.1US 2.6 0.2 0.7Corr. with rank 1.00 0.52 0.56

OECD Employmentprotection indicator

3MC 17 6/28/08

Self-reported Work DisabilitySelf-reported Work Disability

country | none mild moderate severe extreme country | none mild moderate severe extreme ---------+---------------------------------------------------+------------------------------------------ US | 49.84 21.51 16.02 7.35 5.28 US | 49.84 21.51 16.02 7.35 5.28 SHARE-EU | 46.56 25.46 17.37 7.80 2.81 SHARE-EU | 46.56 25.46 17.37 7.80 2.81 germany | 40.19 30.04 21.34 7.02 1.41 germany | 40.19 30.04 21.34 7.02 1.41 sweden | 53.62 15.11 14.86 12.17 4.24 sweden | 53.62 15.11 14.86 12.17 4.24 netherl | 52.05 30.66 9.27 4.92 3.10 netherl | 52.05 30.66 9.27 4.92 3.10 spain | 47.59 20.24 17.21 11.70 3.26 spain | 47.59 20.24 17.21 11.70 3.26 italy | 46.01 27.04 15.47 7.20 4.27 italy | 46.01 27.04 15.47 7.20 4.27 france | 49.13 23.02 18.60 6.60 2.65 france | 49.13 23.02 18.60 6.60 2.65 greece | 68.32 12.17 10.20 7.43 1.89 greece | 68.32 12.17 10.20 7.43 1.89 belgium | 36.64 35.22 19.13 6.91 2.11 belgium | 36.64 35.22 19.13 6.91 2.11 ---------+--------------------------------------------------+----------------------------------------- Total | 47.00 24.92 17.18 7.74 3.15 Total | 47.00 24.92 17.18 7.74 3.15

3MC 18 6/28/08

Simulation results: Simulation results: Work disability in EU and USWork disability in EU and US

(Hopit model)(Hopit model)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

U.S. EU data/USpars/US scales

EU data/USpars/EU scales

EU data/EUpars/US scales

EU

Extreme

Severe

Moderate

Mild

None

3MC 19 6/28/08

Simulation results: Italy and USSimulation results: Italy and US(Hopit model)(Hopit model)

0%

20%

40%

60%

80%

100%

U.S. EU data/USpars/US scales

EU data/USpars/EU scales

EU data/EUpars/US scales

EU

Extreme

Severe

Moderate

Mild

None

3MC 20 6/28/08

Simulation results: Germany and USSimulation results: Germany and US(Hopit model)(Hopit model)

0%

20%

40%

60%

80%

100%

U.S. EU data/USpars/US scales

EU data/USpars/EU scales

EU data/EUpars/US scales

EU

Extreme

Severe

Moderate

Mild

None

3MC 21 6/28/08

Simulation results: Spain and USSimulation results: Spain and US(Hopit model)(Hopit model)

0%

20%

40%

60%

80%

100%

U.S. EU data/USpars/US scales

EU data/USpars/EU scales

EU data/EUpars/US scales

EU

Extreme

Severe

Moderate

Mild

None

3MC 22 6/28/08

Employment RatesEmployment Rates

US 50.16 US 50.16 SHARE-EU 26.27 SHARE-EU 26.27

germany 28.42 germany 28.42 sweden 40.82 sweden 40.82 netherlands 32.32 netherlands 32.32 spain 26.34 spain 26.34 italy 20.41 italy 20.41 france 26.42 france 26.42 greece 25.98 greece 25.98 belgium 21.19 belgium 21.19

Total 29.54 Total 29.54

3MC 23 6/28/08

Work Disability and EmploymentWork Disability and Employment

US SHARE-EU US SHARE-EU

----------------------------- -----------------------------

none 67.61 36.94 none 67.61 36.94

mild 48.70 22.92 mild 48.70 22.92

moderate 30.38 13.78 moderate 30.38 13.78

severe 14.58 8.84 severe 14.58 8.84

extreme 0.99 4.54 extreme 0.99 4.54

----------------------------- -----------------------------

Total 50.16 26.27 Total 50.16 26.27

3MC 24 6/28/08

Work Disability and Employment Work Disability and Employment

3MC 25 6/28/08

Dependent VariablesDependent Variables

{1,...,5}: reported work disabilityiY

, 1,..., : vignette evaluationsliY l L

{0.1}: employment status (1=working; 0 = not working)iE

3MC 26 6/28/08

Work Disability EquationWork Disability Equation

*

independent of

;

(0,1),

i i i

i i i

Y X

N X

1 *if 1,...5 , j jri i ri iY j Y j

1 *if 1,...5 , j jri i ri iY j Y j

3MC 27 6/28/08

Equation for ThresholdsEquation for Thresholds

0 5 1i

1 2,3, 4

, , ,

,

i i i i i

j j ji i

X E u

j

2 independent of and (0, ), i u i iu N X

3MC 28 6/28/08

Vignette EvaluationsVignette Evaluations

*li l liY

1 *if 1,...5 , j jli i li iY j Y j

2 independent of each other, of and of

(0, ), , ,

li v

i i i

Nu X

3MC 29 6/28/08

Employment EquationEmployment Equation

* *

1

* *

independent of

if if

(0,1), , , , ,...,

1 0; 0 0

i i i i

i i i i i i Li

i i i i

E X Y

N X u

E E E E

3MC 30 6/28/08

Important AssumptionsImportant Assumptions

Response consistency: same thresholds in self-Response consistency: same thresholds in self-assessments and vignette evaluationsassessments and vignette evaluations

Justification bias = Shift in response scales = a Justification bias = Shift in response scales = a special form of DIFspecial form of DIF

Vignette equivalence: workers and non-workers and Vignette equivalence: workers and non-workers and respondents in different countries interpret vignettes respondents in different countries interpret vignettes in the same wayin the same way

No causal effect of employment status on health (cf., No causal effect of employment status on health (cf., e.g., Be.g., Böckerman & Ilmakunnas, öckerman & Ilmakunnas, Health EconomicsHealth Economics, , 2009)2009)

3MC 31 6/28/08

Work Disability EquationWork Disability EquationModel with DIFModel with DIF

US EU-US Country dummiesUS EU-US Country dummies

Female -0.017 -0.075 constant -0.189 Female -0.017 -0.075 constant -0.189 Married/LT -0.118* 0.078 Germany -0.689* Married/LT -0.118* 0.078 Germany -0.689* Educyrs -0.039* 0.034* Sweden -1.066* Educyrs -0.039* 0.034* Sweden -1.066* Heart prob 0.463* -0.033 Netherlands -0.699* Heart prob 0.463* -0.033 Netherlands -0.699* Lung dis 0.421* -0.098 Spain -0.999* Lung dis 0.421* -0.098 Spain -0.999* High blood 0.112* -0.028 Italy -0.895* High blood 0.112* -0.028 Italy -0.895* Diabetes 0.256* -0.076 France -1.023* Diabetes 0.256* -0.076 France -1.023* Pain 0.411* 0.048 Greece -1.690* Pain 0.411* 0.048 Greece -1.690* Arthritis 0.364* -0.038 Belgium -0.654* Arthritis 0.364* -0.038 Belgium -0.654* Cancer 0.206* 0.209* Cancer 0.206* 0.209* Cesd score 0.148* 0.126* *=significant Cesd score 0.148* 0.126* *=significant Obese 0.137* -0.020 at 2-sided Obese 0.137* -0.020 at 2-sided Age 58-64 0.166* 0.004 5% level Age 58-64 0.166* 0.004 5% level Age 65-71 0.135* 0.161* Age 65-71 0.135* 0.161* Age 72+ 0.426* 0.087 Age 72+ 0.426* 0.087

3MC 32 6/28/08

Work Disability EquationWork Disability EquationModel without DIFModel without DIF

US EU-US Country dummiesUS EU-US Country dummiesFemale -0.106* -0.007 constant -0.126 Female -0.106* -0.007 constant -0.126 Married/LT -0.175* 0.110+ Germany -0.503* Married/LT -0.175* 0.110+ Germany -0.503* Educyrs -0.046* 0.042* Sweden -0.612*Educyrs -0.046* 0.042* Sweden -0.612*Heart prob 0.484* -0.027 Netherlands -0.615*Heart prob 0.484* -0.027 Netherlands -0.615*Lung dis 0.423* -0.141 Spain -0.646*Lung dis 0.423* -0.141 Spain -0.646*High blood 0.139* -0.065 Italy -0.798*High blood 0.139* -0.065 Italy -0.798*Diabetes 0.321* -0.110 France -0.848*Diabetes 0.321* -0.110 France -0.848*Pain 0.426* 0.006 Greece -1.260*Pain 0.426* 0.006 Greece -1.260*Arthritis 0.354* -0.019 Belgium -0.542*Arthritis 0.354* -0.019 Belgium -0.542*Cancer 0.142* 0.262* Cancer 0.142* 0.262* Cesd score 0.170* 0.114* *=significant Cesd score 0.170* 0.114* *=significant Obese 0.167* 0.004 at 2-sided Obese 0.167* 0.004 at 2-sided Age 58-64 0.157* -0.018 5% level Age 58-64 0.157* -0.018 5% level Age 65-71 0.138* 0.122 Age 65-71 0.138* 0.122 Age 72+ 0.463* 0.010 Age 72+ 0.463* 0.010

3MC 33 6/28/08

Thresholds EquationThresholds Equation(Model with DIF)(Model with DIF)

US EU-US US EU-US Work dummy 0.097* -0.104* Work dummy 0.097* -0.104* Female 0.096* -0.082* Germany -0.187* Female 0.096* -0.082* Germany -0.187* Married/LT 0.051* -0.031 Sweden -0.452* Married/LT 0.051* -0.031 Sweden -0.452* Educyrs 0.003 -0.004+ Netherlands -0.074+ Educyrs 0.003 -0.004+ Netherlands -0.074+ Heart prob -0.016 -0.014 Spain -0.356* Heart prob -0.016 -0.014 Spain -0.356* Lung dis -0.002 0.037 Italy -0.083* Lung dis -0.002 0.037 Italy -0.083* High blood -0.024+ 0.028 France -0.147* High blood -0.024+ 0.028 France -0.147* Diabetes -0.065* 0.069* Greece -0.417* Diabetes -0.065* 0.069* Greece -0.417* Pain -0.038* 0.046* Belgium -0.114* Pain -0.038* 0.046* Belgium -0.114* Arthritis -0.005 -0.008 Arthritis -0.005 -0.008 Cancer 0.066* -0.048 const thrh 1 0 Cancer 0.066* -0.048 const thrh 1 0 Cesd score -0.022* 0.008 thr2 - thr1 0.722* Cesd score -0.022* 0.008 thr2 - thr1 0.722* Obese -0.039* 0.014 thr3 - thr2 0.704* Obese -0.039* 0.014 thr3 - thr2 0.704* Age 58-64 0.021 0.034 thr4 - thr3 0.822* Age 58-64 0.021 0.034 thr4 - thr3 0.822* Age 65-71 0.020 0.039 Age 65-71 0.020 0.039 Age 72+ 0.021 0.026 sigma u 0.426* Age 72+ 0.021 0.026 sigma u 0.426*

*, +: significant at 5% and 10% level, respectively*, +: significant at 5% and 10% level, respectively

3MC 34 6/28/08

Employment Equation (Model with DIF)Employment Equation (Model with DIF)

US EU-USUS EU-USwork disab -0.464* 0.272* work disab -0.464* 0.272* Female -0.246* -0.319* Female -0.246* -0.319* Married/LT -0.034 -0.125 constant 0.440*Married/LT -0.034 -0.125 constant 0.440*Educyrs 0.034* -0.020* Germany 0.291 Educyrs 0.034* -0.020* Germany 0.291 Heart prob -0.015 -0.002 Sweden 0.784*Heart prob -0.015 -0.002 Sweden 0.784*Lung dis -0.125 0.002 Netherlands 0.241 Lung dis -0.125 0.002 Netherlands 0.241 High blood -0.001 0.051 Spain 0.208 High blood -0.001 0.051 Spain 0.208 Diabetes -0.228* 0.152 Italy -0.126 Diabetes -0.228* 0.152 Italy -0.126 Pain 0.102+ -0.025 France 0.300+Pain 0.102+ -0.025 France 0.300+Arthritis 0.031 -0.058 Greece 0.157 Arthritis 0.031 -0.058 Greece 0.157 Cancer 0.004 0.034 Belgium 0.041 Cancer 0.004 0.034 Belgium 0.041 Cesd score -0.051* -0.026 Cesd score -0.051* -0.026 Obese 0.204* -0.284* *,+: signif. at Obese 0.204* -0.284* *,+: signif. at Age 58-64 -0.620* -0.406* 5%,10% level Age 58-64 -0.620* -0.406* 5%,10% level Age 65-71 -1.268* -1.296* Age 65-71 -1.268* -1.296* Age 72+ -1.813* -1.402* Age 72+ -1.813* -1.402*

3MC 35 6/28/08

Employment Equation (Model without DIF)Employment Equation (Model without DIF) US EU-USUS EU-USWork disab. -0.516* 0.319* Work disab. -0.516* 0.319* Female -0.289* -0.282* Female -0.289* -0.282* Married/LT -0.069 -0.096 const work 0.473*Married/LT -0.069 -0.096 const work 0.473*Educyrs 0.030* -0.015 Germany 0.310 Educyrs 0.030* -0.015 Germany 0.310 Heart prob 0.015 -0.021 Sweden 0.852*Heart prob 0.015 -0.021 Sweden 0.852*Lung dis -0.102 -0.032 Netherland 0.239 Lung dis -0.102 -0.032 Netherland 0.239 High blood 0.016 0.034 Spain 0.252 High blood 0.016 0.034 Spain 0.252 Diabetes -0.189* 0.122 Italy -0.129 Diabetes -0.189* 0.122 Italy -0.129 Pain 0.131* -0.058 France 0.310+Pain 0.131* -0.058 France 0.310+Arthritis 0.041 -0.066 Greece 0.215 Arthritis 0.041 -0.066 Greece 0.215 Cancer -0.023 0.058 Belgium 0.044 Cancer -0.023 0.058 Belgium 0.044 Cesd score -0.035* -0.039 Cesd score -0.035* -0.039 Obese 0.223* -0.296* *,+: significant Obese 0.223* -0.296* *,+: significant Age 58-64 -0.633* -0.399* at 5%,10% level Age 58-64 -0.633* -0.399* at 5%,10% level Age 65-71 -1.285* -1.288* Age 65-71 -1.285* -1.288* Age 72+ -1.815* -1.407* Age 72+ -1.815* -1.407*

3MC 36 6/28/08

Simulated self-reported work limitations; Simulated self-reported work limitations; model including employment equationmodel including employment equation

0%10%20%30%40%50%60%70%80%90%

100%

US EU-dataUS-dis

US-workUS-

scale

EU-dataUS-dis

US-workEU-

scale

EU-dataUS-dis

EU-workUS-

scale

EU-dataUS-dis

EU-workEU-

scale

EU-dataEU-dis

US-workUS-

scale

EU-dataEU-dis

US-workEU-

scale

EU-dataEU-dis

EU-workUS-

scale

EU

Extreme

Severe

Moderate

Mild

None

3MC 37 6/28/08

Employment ratesEmployment rates

Employment rate

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

US EU-dataUS-dis

US-workUS-

scale

EU-dataUS-dis

US-workEU-

scale

EU-dataUS-dis

EU-workUS-

scale

EU-dataUS-dis

EU-workEU-

scale

EU-dataEU-dis

US-workUS-

scale

EU-dataEU-dis

US-workEU-

scale

EU-dataEU-dis

EU-workUS-

scale

EU

Employment rate

3MC 38 6/28/08

Percent working by disability categoryPercent working by disability category

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

US EU-dataUS-dis

US-workUS-scale

EU-dataUS-dis

US-workEU-scale

EU-dataUS-dis

EU-workUS-scale

EU-dataUS-dis

EU-workEU-scale

EU-dataEU-dis

US-workUS-scale

EU-dataEU-dis

US-workEU-scale

EU-dataEU-dis

EU-workUS-scale

EU

None

Mild

Moderate

Severe

Extreme

3MC 39 6/28/08

Percent working by disability categoryPercent working by disability category

None Mild Moderate Severe Extreme Correlations US 66.6% 45.8% 34.3% 23.5% 12.2% 0.32 EU-data US-dis US-work US-scale 59.5% 36.5% 25.0% 15.1% 6.3% 0.34 EU-data US-dis US-work EU-scale 61.8% 40.5% 28.6% 18.0% 7.8% 0.33 EU-data US-dis EU-work US-scale 34.4% 22.3% 16.7% 11.5% 6.1% 0.20 EU-data US-dis EU-work EU-scale 35.3% 24.4% 18.8% 13.4% 7.4% 0.19 EU-data EU-dis US-work US-scale 59.8% 35.3% 24.3% 15.0% 6.7% 0.33 EU-data EU-dis US-work EU-scale 61.8% 39.3% 27.8% 17.7% 8.2% 0.33 EU-data EU-dis EU-work US-scale 33.6% 20.7% 15.4% 10.8% 6.1% 0.20 EU 34.5% 22.9% 17.4% 12.4% 7.3% 0.19

3MC 40 6/28/08

Conclusions 1Conclusions 1

Norms about what constitutes a work disability vary Norms about what constitutes a work disability vary considerably across countriesconsiderably across countries

Elicitation of norms by vignettes is fairly noisy, but Elicitation of norms by vignettes is fairly noisy, but suggests some consistency across domains and the suggests some consistency across domains and the norms appear consistent with legal employment norms appear consistent with legal employment protectionprotection

Differences in self-reports are at least partly a reflection Differences in self-reports are at least partly a reflection of social norms, rather than of “true” disability of social norms, rather than of “true” disability differencesdifferences

Scale corrections make a difference for comparing work Scale corrections make a difference for comparing work disability across countriesdisability across countries

3MC 41 6/28/08

Conclusions 2Conclusions 2

Justification bias is significant in the US but not in Justification bias is significant in the US but not in SHARE-EU, reflecting different attitudes towards workingSHARE-EU, reflecting different attitudes towards working

Correcting for justification bias reduces the estimated Correcting for justification bias reduces the estimated effect of work disability on employment in the US, but effect of work disability on employment in the US, but not very muchnot very much

The relation between work disability and work is much The relation between work disability and work is much stronger in the US than in the EUstronger in the US than in the EU

Other reasons than health reduce participation among Other reasons than health reduce participation among older people in the EU more than in the USolder people in the EU more than in the US