Temporary versus permanent employment: Does health matter?

Poor health may inhibit active participation in the labour market and restrict the types of employment available to an individual. This paper uses recent survey data from New Zealand and employs a bivariate probit approach (to address sample selection issues) for investigating the relationship between health status and employment type. We find that health issues (and in particular mental health) are negatively related to the likelihood of being employed; and entering full-time and / or permanent employment. The picture with respect to temporary work is a little more fuzzy, with mixed results, and only minimal evidence is found that poor health is positively related to being in temporary employment.