IDEAS home Printed from https://ideas.repec.org/a/eee/jhecon/v36y2014icp1-19.html
   My bibliography  Save this article

The impact of the 1918 Spanish flu epidemic on economic performance in Sweden

Author

Listed:
  • Karlsson, Martin
  • Nilsson, Therese
  • Pichler, Stefan

Abstract

We study the impact of the 1918 influenza pandemic on short- and medium-term economic performance in Sweden. The pandemic was one of the severest and deadliest pandemics in human history, but it has hitherto received only scant attention in the economic literature – despite representing an unparalleled labour supply shock. In this paper, we exploit seemingly exogenous variation in incidence rates between Swedish regions to estimate the impact of the pandemic. The pandemic led to a significant increase in poorhouse rates. There is also evidence that capital returns were negatively affected by the pandemic. However, contrary to predictions, we find no discernible effect on earnings.

Suggested Citation

  • Karlsson, Martin & Nilsson, Therese & Pichler, Stefan, 2014. "The impact of the 1918 Spanish flu epidemic on economic performance in Sweden," Journal of Health Economics, Elsevier, vol. 36(C), pages 1-19.
    • Handle: RePEc:eee:jhecon:v:36:y:2014:i:c:p:1-19
    DOI: 10.1016/j.jhealeco.2014.03.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167629614000344
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhealeco.2014.03.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alok Bhargava & Dean T. Jamison & Lawrence J. Lau & Christopher J. L. Murray, 2006. "Modeling the effects of health on economic growth," World Scientific Book Chapters, in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 20, pages 269-286, World Scientific Publishing Co. Pte. Ltd..
    2. Sharon Maccini & Dean Yang, 2009. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall," American Economic Review, American Economic Association, vol. 99(3), pages 1006-1026, June.
    3. Andrea Ichino & Rudolf Winter-Ebmer, 2004. "The Long-Run Educational Cost of World War II," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 57-86, January.
    4. Thomas A. Garrett, 2009. "War And Pestilence As Labor Market Shocks: U.S. Manufacturing Wage Growth 1914–1919," Economic Inquiry, Western Economic Association International, vol. 47(4), pages 711-725, October.
    5. Douglas Almond, 2006. "Is the 1918 Influenza Pandemic Over? Long-Term Effects of In Utero Influenza Exposure in the Post-1940 U.S. Population," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 672-712, August.
    6. George J. Borjas, 2021. "Native Internal Migration and the Labor Market Impact of Immigration," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 10, pages 275-312, World Scientific Publishing Co. Pte. Ltd..
    7. Paul J. Devereux, 2004. "Changes in Relative Wages and Family Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
    8. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, European Economic Association, vol. 8(4), pages 677-716, June.
    9. Lachaud, Jean-Pierre, 2007. "HIV prevalence and poverty in Africa: Micro- and macro-econometric evidences applied to Burkina Faso," Journal of Health Economics, Elsevier, vol. 26(3), pages 483-504, May.
    10. Daron Acemoglu & Simon Johnson & James Robinson, 2003. "Disease and Development in Historical Perspective," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 397-405, 04/05.
    11. Bell, Clive & Gersbach, Hans, 2009. "The macroeconomics of targeting: the case of an enduring epidemic," Journal of Health Economics, Elsevier, vol. 28(1), pages 54-72, January.
    12. James H. Stock & Mark W. Watson, 2008. "Heteroskedasticity-Robust Standard Errors for Fixed Effects Panel Data Regression," Econometrica, Econometric Society, vol. 76(1), pages 155-174, January.
    13. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    14. Bohlin, Jan & Eurenius, Anna-Maria, 2010. "Why they moved -- Emigration from the Swedish countryside to the United States, 1881-1910," Explorations in Economic History, Elsevier, vol. 47(4), pages 533-551, October.
    15. Kirsten I. Bos & Verena J. Schuenemann & G. Brian Golding & Hernán A. Burbano & Nicholas Waglechner & Brian K. Coombes & Joseph B. McPhee & Sharon N. DeWitte & Matthias Meyer & Sarah Schmedes & James , 2011. "A draft genome of Yersinia pestis from victims of the Black Death," Nature, Nature, vol. 478(7370), pages 506-510, October.
    16. Thomas A. Garrett, 2008. "Pandemic economics: the 1918 influenza and its modern-day implications," Review, Federal Reserve Bank of St. Louis, vol. 90(Mar), pages 74-94.
    17. Raouf Boucekkine & Bity Diene & Theophile Azomahou, 2008. "Growth Economics of Epidemics: A Review of the Theory," Mathematical Population Studies, Taylor & Francis Journals, vol. 15(1), pages 1-26.
    18. Johansson, Lars M., 2007. "Fiscal implications of AIDS in South Africa," European Economic Review, Elsevier, vol. 51(7), pages 1614-1640, October.
    19. Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(30), pages 08-45.
    20. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291, Decembrie.
    21. Mamelund, Svenn-Erik, 2006. "A socially neutral disease? Individual social class, household wealth and mortality from Spanish influenza in two socially contrasting parishes in Kristiania 1918-19," Social Science & Medicine, Elsevier, vol. 62(4), pages 923-940, February.
    22. Brainerd, Elizabeth & Siegler, Mark V, 2003. "The Economic Effects of the 1918 Influenza Epidemic," CEPR Discussion Papers 3791, C.E.P.R. Discussion Papers.
    23. Richard E. Nelson, 2010. "Testing the Fetal Origins Hypothesis in a developing country: evidence from the 1918 Influenza Pandemic," Health Economics, John Wiley & Sons, Ltd., vol. 19(10), pages 1181-1192, October.
    24. Lembke B., 1918. "√ a. p," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 111(1), pages 709-712, February.
    25. Douglas Almond & Bhashkar Mazumder, 2005. "The 1918 Influenza Pandemic and Subsequent Health Outcomes: An Analysis of SIPP Data," American Economic Review, American Economic Association, vol. 95(2), pages 258-262, May.
    26. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karlsson, Martin & Nilsson, Therese & Pichler, Stefan, 2012. "What Doesn't Kill You Makes You Stronger? The Impact of the 1918 Spanish Flu Epidemic on Economic Performance in Sweden," Working Paper Series 911, Research Institute of Industrial Economics.
    2. Brian Beach & Karen Clay & Martin Saavedra, 2022. "The 1918 Influenza Pandemic and Its Lessons for COVID-19," Journal of Economic Literature, American Economic Association, vol. 60(1), pages 41-84, March.
    3. Daniel de Kadt & Johan Fourie & Jan Greyling & Elie Murard & Johannes Norling, 2021. "Correlates and Consequences of the 1918 Influenza in South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 89(2), pages 173-195, June.
    4. Mario F. Carillo & Tullio Jappelli, 2020. "Pandemics and Local Economic Growth: Evidence from the Great Influenza in Italy," CSEF Working Papers 568, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    5. Enrico Berbenni & Stefano Colombo, 2021. "The impact of pandemics: revising the Spanish Flu in Italy in light of models’ predictions, and some lessons for the Covid-19 pandemic," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(2), pages 219-243, June.
    6. Karlsson Martin & Matvieiev Mykhailo & Obrizan Maksym, 2023. "The Macroeconomic Impact of the 1918–19 Influenza Pandemic in Sweden," The B.E. Journal of Macroeconomics, De Gruyter, vol. 23(2), pages 637-675, June.
    7. Joël Floris & Laurent Kaiser & Harald Mayr & Kaspar Staub & Ulrich Woitek, 2022. "Investigating survivorship bias: the case of the 1918 flu pandemic," Applied Economics Letters, Taylor & Francis Journals, vol. 29(21), pages 2047-2052, December.
    8. Haelim Anderson & Jin-Wook Chang & Adam Copeland, 2020. "The Effect of the Central Bank Liquidity Support during Pandemics: Evidence from the 1918 Spanish Influenza Pandemic," Finance and Economics Discussion Series 2020-050, Board of Governors of the Federal Reserve System (U.S.).
    9. Peter A.G. van Bergeijk, 2021. "Pandemic Economics," Books, Edward Elgar Publishing, number 20401.
    10. Haelim Anderson & Jin-Wook Chang & Adam Copeland, 2020. "The Effect of the Central Bank Liquidity Support during Pandemics: Evidence from the 1918 Influenza Pandemic," Staff Reports 928, Federal Reserve Bank of New York.
    11. Turner, Alex J. & Fichera, Eleonora & Sutton, Matt, 2021. "The effects of in-utero exposure to influenza on mental health and mortality risk throughout the life-course," Economics & Human Biology, Elsevier, vol. 43(C).
    12. Samantha Rawlings, 2012. "Gender, race, and heterogeneous scarring and selection effects of epidemic malaria on human capital," Economics Discussion Papers em-dp2012-01, Department of Economics, University of Reading.
    13. Clay, Karen & Lewis, Joshua & Severnini, Edson, 2018. "Pollution, Infectious Disease, and Mortality: Evidence from the 1918 Spanish Influenza Pandemic," The Journal of Economic History, Cambridge University Press, vol. 78(4), pages 1179-1209, December.
    14. Almond, Douglas & Currie, Janet & Herrmann, Mariesa, 2012. "From infant to mother: Early disease environment and future maternal health," Labour Economics, Elsevier, vol. 19(4), pages 475-483.
    15. Campbell, Douglas L., 2011. "Estimating the impact of currency unions on trade using a dynamic gravity framework," MPRA Paper 35531, University Library of Munich, Germany.
    16. Dmitry Arkhangelsky & Susan Athey & David A. Hirshberg & Guido W. Imbens & Stefan Wager, 2021. "Synthetic Difference-in-Differences," American Economic Review, American Economic Association, vol. 111(12), pages 4088-4118, December.
    17. Eide, Eric R. & Showalter, Mark H., 2011. "Estimating the relation between health and education: What do we know and what do we need to know?," Economics of Education Review, Elsevier, vol. 30(5), pages 778-791, October.
    18. Hönig, Tillman, 2017. "The Impact of Peace: Evidence from Nigeria," MPRA Paper 83302, University Library of Munich, Germany.
    19. Ilan Noy & Toshihiro Okubo & Eric Strobl, 2023. "The Japanese textile sector and the influenza pandemic of 1918–1920," Journal of Regional Science, Wiley Blackwell, vol. 63(5), pages 1192-1227, November.
    20. C. Justin Cook & Jason M. Fletcher & Angela Forgues, 2019. "Multigenerational Effects of Early-Life Health Shocks," Demography, Springer;Population Association of America (PAA), vol. 56(5), pages 1855-1874, October.

    More about this item

    Keywords

    Spanish flu; Health shock; Difference-in-differences;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:36:y:2014:i:c:p:1-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505560 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.