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Health effects of downsizing survival and job loss in Norway

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  • Østhus, Ståle
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    Abstract

    The effects of job displacement (i.e. job loss due to downsizing or plant closure) and downsizing survival on different health outcomes (i.e. psychological distress, muscle-skeletal pain, and chest pain) were examined with annual panel data from the Norwegian Panel Survey of Living Conditions 1997–2003. The data were analyzed by means of dynamic panel data regression models, taking explicitly into account pre-downsizing health levels and unobserved heterogeneity. In contrast to some previous studies, but in line with theoretical expectations, no significant effect of downsizing survival was found. Job displacement was, however, found to lead to a significant increase in psychological distress, but even this effect seems transitory rather than long-lasting.

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    Bibliographic Info

    Article provided by Elsevier in its journal Social Science & Medicine.

    Volume (Year): 75 (2012)
    Issue (Month): 5 ()
    Pages: 946-953

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    Handle: RePEc:eee:socmed:v:75:y:2012:i:5:p:946-953

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    Keywords: Norway; Downsizing; Job loss; Distress; Health complaints; Dynamic panel regression; Fixed-effects regression;

    References

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    1. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
    2. Ferrie, Jane E. & Shipley, Martin J. & Marmot, Michael G. & Stansfeld, Stephen & Smith, George Davey, 1998. "The health effects of major organisational change and job insecurity," Social Science & Medicine, Elsevier, vol. 46(2), pages 243-254, January.
    3. Bruce D. Meyer, 1994. "Natural and Quasi- Experiments in Economics," NBER Technical Working Papers 0170, National Bureau of Economic Research, Inc.
    4. Madrian, Brigitte C, 1994. "Employment-Based Health Insurance and Job Mobility: Is There Evidence of Job-Lock?," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 27-54, February.
    5. Ezzy, Douglas, 1993. "Unemployment and mental health: A critical review," Social Science & Medicine, Elsevier, vol. 37(1), pages 41-52, July.
    6. Kristiina Huttunen & Jarle Møen & Kjell G. Salvanes, 2011. "How Destructive Is Creative Destruction? Effects Of Job Loss On Job Mobility, Withdrawal And Income," Journal of the European Economic Association, European Economic Association, vol. 9(5), pages 840-870, October.
    7. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
    8. Østhus, Ståle & Mastekaasa, Arne, 2010. "The impact of downsizing on remaining workers' sickness absence," Social Science & Medicine, Elsevier, vol. 71(8), pages 1455-1462, October.
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    Cited by:
    1. Bassanini, Andrea & Caroli, Eve, 2014. "Is Work Bad for Health? The Role of Constraint vs Choice," IZA Discussion Papers 7891, Institute for the Study of Labor (IZA).

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