3.1 Objective Indices
In response to the objections pertaining to SAH and “objective” measures for
health, several researchers have attempted to alleviate problems of measurement error,
endogeneity (“error in variables”) , and comparability by using more comprehensive
“summary” indices. Inevitably, the index of choice – its method for its construction and
the vector of covariates used – is subject to evaluation by the author and will depend on
the particular relationship between health and the labor outcome that he or she wishes to
estimate. Hence, several different indices can be found throughout the vast literature on
health and labor. In this section I categorize the various indices found in the literature
based on their method of construction and discuss their comparative advantages and
deficiencies.