The effects of job displacement on spousal health

This paper studies how job displacement influences the health of the worker’s spouse. Results show that the husband’s displacement leads to an increase in the probability of the wife reporting her physical health as fair/poor. These wives are also more likely to experience high blood pressure, heart disease, and/or emotional issues. Wives who are in poor health at baseline, are in low financial standing prior to the husbands’ job loss, are not working two years before the husbands’ job loss, and have children at home at the time of the husbands’ displacement tend to drive these results. Husbands of displaced wives experience little change in self-reported health, the probability of high blood pressure, heart disease, or emotional issues.