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Health status and time allocation in Spain

This article analyses the relationship between health status and the time devoted to both market and nonmarket work by individuals responding to the Spanish Time Use Survey 2002–2003. We find that better health of individuals is associated with an increase in the hours of market work, while reducing the time devoted to nonmarket work. We show that OLS estimations yield biased results, and the use of instrumental variables (IV) is needed to deal with endogeneity issues.