Work Disability, Work, and Justification Bias in Europe and the U.S.
To analyze the effect of health on work, many studies use a simple self-assessed health measure based upon a question such as "do you have an impairment or health problem limiting the kind or amount of work you can do?" A possible drawback of such a measure is the possibility that different groups of respondents may use different response scales. This is commonly referred to as "differential item functioning" (DIF). A specific form of DIF is justification bias: to justify the fact that they don't work, non-working respondents may classify a given health problem as a more serious work limitation than working respondents. In this paper we use anchoring vignettes to identify justification bias and other forms of DIF across countries and socio-economic groups among older workers in the U.S. and Europe. Generally, we find differences in response scales across countries, partly related to social insurance generosity and employment protection. Furthermore, we find significant evidence of justification bias in the U.S. but not in Europe, suggesting differences in social norms concerning work.
This research was supported by grants from the National Institute on Aging to RAND and the Social Security Administration through MRRC. It uses data from SHARE Wave 1, primarily funded by the European Commission through its 5th and 6th framework programmes (project numbers QLK6-CT-2001- 00360; RII-CT- 2006-062193; CIT5-CT-2005-028857) and of HRS, funded by NIA. We are grateful to Angus Deaton for useful comments on an earlier version.
The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
Work Disability, Work, and Justification Bias in Europe and the United States , Arie Kapteyn, James P. Smith, Arthur van Soest. in Explorations in the Economics of Aging, Wise. 2011