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This paper provides new estimates of the effects on the probability of participation in the labour force of changes in the prevalence of health conditions or changes in educational attainment levels. The research confirms that better health and education can result in substantially greater labour force participation for those affected. The paper explores alternative methodologies to obtain estimates of the labour force participation effects of the health and education variables targeted by the National Reform Agenda. [The] paper's main contribution to the understanding of the effects of health and education on labour force participation is twofold: through the use of an integrated model of labour force participation, all relevant effects are estimated simultaneously in a consistent framework, thus making comparisons and interpretation of these effects easier; [and] it investigates the possibility that various types of bias may affect the relationships of interest. [The] paper forms part of a Productivity Commission research program investigating in more detail parameters used in its report 'Potential benefits of the National Reform Agenda'. The new parameter estimates would: alter some of the labour market projections contained in the report, but would not affect the thrust of the conclusions; and provide an improved basis for cost-benefit analyses of possible changes in specific health or education policies.