Estimating the relationship between health status and labour force participation in Namibia

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Date
2024
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Publisher
University of Namibia
Abstract
The relationship between health and labour force participation is of policy interest due to the important role that health plays in economic development. Evidence suggests that there is a positive relationship between good health status and labour force participation. Using 2015/2016 Namibia Household Income and Expenditure Survey (NHIES), a nationally representative household and individual dataset, this thesis examines the relationship between health status and labour force participation in Namibia, a country where such evidence is scarce. The study employed the probit model to estimate the effect of health on the probability of participating in the labour market. The analysis was further disaggregated to assess the relationship between health status on labour force participation by gender. The results suggest that an increase in the prevalence of chronic illnesses such as diabetes, high blood pressure, joint inflammation, cancer, cardiac disease, epilepsy, respiratory disease, stomach ulcer, chronic kidney disease, and anaemia significantly reduces the probability of labour force participation in Namibia. In addition, disabilities such as difficulty with cleaning, difficulty with walking, difficulty with remembering, and difficulty with hearing significantly reduce the probability of participating in the labour market. The results also show that the effect of chronic illness and disabilities on the probability of labour force participation varies by gender, with the magnitude of the effect generally higher among men. Thus, strengthening current public health strategies or policies that promote good health practices and health outcomes (tobacco and alcohol control policies), thereby enhancing the probability of labour force participation in Namibia. In addition, the promotion of exercising through the establishment of community parks will foster health and labour force participation
Description
Thesis submitted in partial fulfilment of the requirements for the degree of master of science in economics
Keywords
Labour force participation, Health status, Chronic illnesses, Disabilities
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