Health status and wage differences: measuring productivity penalty and discrimination patterns

In this study by utilizing the 2008 Athens Area Study (AAS) data set, I examine to what extent inequalities in the Greek labour market between health-impaired and healthy employees may be attributed to differences in productivity and/or discrimination. A group of health-impaired male and female employees who self-reported that their productivity is not affected by their impairment is used to measure the effects of discrimination separately from the effects of poor health on wages. A penalty for heath-impaired employees having work limitations exists. Evidence of wage discrimination against health-impaired employees having no work limitations is also observed. Both findings are statistically significant. Currently, health-impaired people do not appear to face a level playing field in the Greek labour market.