Spain, like the whole European Union (EU), is suffering a dramatic ageing process, while older workers (55-64 years) have high inactivity rates. In this sense, the promotion of active ageing will be necessary to guarantee the financial sustainability of pension systems as well as general...

This paper adds to the empirical literature of health as a potential endogenous explanatory variable in wage equations by addressing problems such as unobserved heterogeneity, sample selection and measurement error (in the health variable) in one comprehensive framework. Moreover, by using...