Non-communicable diseases and labor force participation in Turkiye: Socioeconomic implications from a recursive bivariate probit analysis

Abstract

The purpose of this study is to examine how chronic health conditions affect individuals’ decisions and abilities to participate in the labor force in Türkiye in 2019. Using data from the Türkiye Health Survey (THS) conducted by the Turkish Statistical Institute (TURKSTAT), the analysis investigates the effects of chronic diseases on labor force participation. Since the presence of chronic health conditions is highly likely to be associated with the pandemic, we restrict our analysis to the pre-COVID period to cover the non-pandemic-related effects of poor health. Methodologically, the study employs Ordinary Least Squares (OLS) and Probit models, alongside a Recursive Bivariate Probit (RBVP) model to address potential endogeneity associated with chronic health conditions. The findings indicate that individuals aged 15–64 with at least one chronic condition are less likely to participate in the workforce. The results confirm the significant role of health in shaping labor market outcomes and underscore the need for policies supporting the employment of individuals with chronic conditions. In terms of policy implications, preventive measures can help reduce the number of individuals affected by non-communicable illnesses. Additionally, policies aimed at improving working conditions and providing targeted support for individuals with chronic illnesses could enhance workforce participation and overall economic productivity.