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The effect of job loss on overweight and drinking

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Author Info

  • Deb, Partha
  • Gallo, William T.
  • Ayyagari, Padmaja
  • Fletcher, Jason M.
  • Sindelar, Jody L.

Abstract

This paper examines the impact of job loss due to business closings on body mass index (BMI) and alcohol consumption. We suggest that the ambiguous findings in the extant literature may be due in part to unobserved heterogeneity in response and in part due to an overly broad measure of job loss that is partially endogenous (e.g., layoffs). We improve upon this literature using: exogenously determined business closings, a sophisticated estimation approach (finite mixture models) to deal with complex heterogeneity, and national, longitudinal data from the Health and Retirement Study. For both alcohol consumption and BMI, we find evidence that individuals who are more likely to respond to job loss by increasing unhealthy behaviors are already in the problematic range for these behaviors before losing their jobs. These results suggest the health effects of job loss could be concentrated among "at risk" individuals and could lead to negative outcomes for the individuals, their families, and society at large.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Health Economics.

Volume (Year): 30 (2011)
Issue (Month): 2 (March)
Pages: 317-327

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Handle: RePEc:eee:jhecon:v:30:y:2011:i:2:p:317-327

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Web page: http://www.elsevier.com/locate/inca/505560

Related research

Keywords: Job loss Drinking BMI Business closings Finite mixture models;

References

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  1. Morduch, J. & Stern, H.S., 1995. "Using Mixture Models to Detect Sex Bias in Health Outcomes in Bangladesh," Papers 513, Harvard - Institute for International Development.
  2. Luojia Hu & Christopher Taber, 2005. "Layoffs, Lemons, Race, and Gender," NBER Working Papers 11481, National Bureau of Economic Research, Inc.
  3. Partha Deb & Karen Smith Conway, 2002. "Is Prenatal Care Really Ineffective? Or, is the 'Devil' in the Distribution?," Economics Working Paper Archive at Hunter College 02/2, Hunter College Department of Economics.
  4. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1993. "Long-term earnings losses of high-seniority displaced workers," Economic Perspectives, Federal Reserve Bank of Chicago, issue Nov, pages 2-20.
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  7. William T. Gallo & Elizabeth H. Bradley & Stanislav V. Kasl, 2001. "The Effect of Job Displacement on Subsequent Health," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 159-165.
  8. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992. "Earnings losses of displaced workers," Working Paper Series, Macroeconomic Issues 92-28, Federal Reserve Bank of Chicago.
  9. Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April.
  10. Iversen, Lars & Klausen, Hans, 1986. "Alcohol consumption among laid-off workers before and after closure of a Danish ship-yard: A 2-year follow-up study," Social Science & Medicine, Elsevier, vol. 22(1), pages 107-109, January.
  11. Christopher J. Ruhm, 1996. "Are Recessions Good For Your Health?," NBER Working Papers 5570, National Bureau of Economic Research, Inc.
  12. Kerwin Kofi Charles & Melvin Stephens, 2004. "Job Displacement, Disability, and Divorce," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 489-522, April.
  13. Wang, Peiming & Cockburn, Iain M & Puterman, Martin L, 1998. "Analysis of Patent Data--A Mixed-Poisson-Regression-Model Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(1), pages 27-41, January.
  14. Andrew Weiss, 1995. "Human Capital vs. Signalling Explanations of Wages," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 133-154, Fall.
  15. Stevens, Ann Huff, 1997. "Persistent Effects of Job Displacement: The Importance of Multiple Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 165-88, January.
  16. Christopher J. Ruhm, 2003. "Healthy Living in Hard Times," NBER Working Papers 9468, National Bureau of Economic Research, Inc.
  17. Deb, Partha & Trivedi, Pravin K, 1997. "Demand for Medical Care by the Elderly: A Finite Mixture Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(3), pages 313-36, May-June.
  18. Wedel, M, et al, 1993. "A Latent Class Poisson Regression Model for Heterogeneous Count Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 397-411, Oct.-Dec..
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Citations

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Cited by:
  1. Bassanini, Andrea & Caroli, Eve, 2014. "Is work bad for health? The role of constraint vs choice," CEPREMAP Working Papers (Docweb) 1402, CEPREMAP.
  2. repec:hal:wpaper:hal-00784777 is not listed on IDEAS
  3. Eve Caroli & Mathilde Godard, 2014. "Does Job Insecurity Deteriorate Health? A Causal Approach for Europe," PSE Working Papers hal-00784777, HAL.
  4. Jan Marcus, 2012. "Does Job Loss Make You Smoke and Gain Weight?," SOEPpapers on Multidisciplinary Panel Data Research 432, DIW Berlin, The German Socio-Economic Panel (SOEP).
  5. Nicole Halmdienst & Rudolf Winter-Ebmer, 2013. "Long-Run Effects of Childhood Shocks on Health in Late Adulthood: Evidence from the Survey of Health, Ageing, and Retirement in Europe," Economics working papers 2013-02, Department of Economics, Johannes Kepler University Linz, Austria.
  6. Marcus, Jan, 2013. "The Effect of Unemployment on the Mental Health of Spouses – Evidence from plant closures in Germany," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 546-558.
  7. Reinhard Schunck & Benedikt G. Rogge, 2012. "Unemployment and Smoking: Causation, Selection, or Common Cause? Evidence from Longitudinal Data," SOEPpapers on Multidisciplinary Panel Data Research 491, DIW Berlin, The German Socio-Economic Panel (SOEP).
  8. Maclean, Johanna Catherine, 2013. "The health effects of leaving school in a bad economy," Journal of Health Economics, Elsevier, vol. 32(5), pages 951-964.
  9. Marcus, Jan, 2012. "The effect of involuntary unemployment on the mental health of spouses," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65413, Verein für Socialpolitik / German Economic Association.
  10. Fishman, Ezra & Kimhi, Ayal, 2013. "Is the Israeli Labor Market Segmented? Revisiting the Mixture Regression Model," Discussion Papers 164512, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  11. Helmut Farbmacher & Peter Ihle & Ingrid Schubert & Joachim Winter & Amelie C. Wuppermann, 2013. "Heterogeneous Effects of a Nonlinear Price Schedule for Outpatient Care," CESifo Working Paper Series 4499, CESifo Group Munich.
  12. Arcaya, Mariana & Glymour, M. Maria & Christakis, Nicholas A. & Kawachi, Ichiro & Subramanian, S.V., 2014. "Individual and spousal unemployment as predictors of smoking and drinking behavior," Social Science & Medicine, Elsevier, vol. 110(C), pages 89-95.
  13. Vincenzo Atella & Partha Deb, 2013. "Heterogeneity in Long Term Health Outcomes of Migrants within Italy," NBER Working Papers 19422, National Bureau of Economic Research, Inc.

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