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Yin N and Heiland F

                                       limitation severity in these vignettes. European respondents, compared to Americans,
                                       tend to classify a vignette as more work-limiting. American respondents are the least
                                       generous overall in rating work limitations, followed by the Italians, the Belgians,
                                       the Dutch, and the French. The Swedes and the Spaniards are at the other end of
                                       the spectrum and inclined to rate a given work limitation as more severe. German
                                       respondents are in the middle.
                                         These patterns are notable in light of our discussion of disability program generosity.
                                       More inclusive rating scales are associated with more generous disability regimes,
                                       as indicated by the fact that the country ranking according to the inclusiveness of
                                       disability rating is in line with the ranking in terms of the generosity of the country’s
                                       disability system.
                                         Figure 2-1 shows the correlation between the generosity of disability system and
                                       disability vignette rating. The horizontal axis represents a country’s disability policy
                                       generosity index. The vertical axis refers to the percentage of respondents in a country
                                       who classify a vignette as not at all limited. Each diamond in the graph represents
                                       the rating for a specific vignette. There are apparent variations between countries
                                       with different disability policy generosity in classifying the severity of the same
                                       disability vignettes. The difference between the U.S. and other European countries in
                                       rating styles is striking. The graph indicates a weak and negative correlation between
                                       disability policy and disability ratings. That is, more generous disability policy seems
                                       to be generally associated with more inclusive disability classifying styles. Together
                                       with Figure 2-2, the direction of the correlations shows that respondents under more
                                       generous disability regimes are more likely to report the same vignettes as more
                                       work limiting. The weak strength of the correlations may have to do with how the
                                       demographic and socioeconomic characteristics of a population are related to the
                                       perception of popular views. Next we will estimate the effects of disability policy
                                       generosity on reporting heterogeneity while controlling for a series of respondents’
                                       characteristics. We test whether disability policy generosity predicts reporting styles
                                       and whether the predictive power is robust to including the respondents’ individual
                                       level factors.

                                       2.3  Covariates

                                       We test a model with a detailed set of individual-level and country-level factors.
                                       Specifically, the model includes standard demographic covariates: age dummies,
                                       education (in years), dummies for being female, and a series of health indicators
                                       (dummies for high blood pressure, diabetes, cancer, lung problems, heart problems,
                                       arthritis, obesity, the number of ADL limitations, and the number of IADL limitations).
                                       We also include dummies for (last) occupation (technical/sales/administrative
                                       support, service, farming/fishing/forestry, precision production/craft/repair, operators/
                                       fabricators/laborers, elementary occupation, and managerial/professional specialty as
                                       omitted/reference occupation). Past occupation is expected to be an important predictor
                                       of a person’s risk of having a work limitation. The severity of work limitations is a
                                       function not only of the health problems but also of the type of work engaged.
                                         With respect to variation at the country-level, we include a set of variables describing
                                       how a country scores in terms of disability policy generosity (coverage and maximum
                                       benefit level, disability level for full benefits, permanence of benefits, medical
                                       assessment, vocational assessment, minimum disability level and sickness benefit, and
                                       unemployment benefit level and duration).
                                       2.4  Statistical Approach

                                       Standard ordered regression models (e.g. ordered probit) are often used to analyze self-
                                       reported work limitation on a five-point severity scale:
                                                  Pr (h =    ) k = Pr   (µ  k−1  ≤  x β + ε <  µ k )  (1)
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            International Journal of Population Studies   2017, Volume 3, Issue 1                             51
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