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Health shocks, employment and income in the Spanish labour market

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  • Pilar Garc�a Gómez

    (Departament d' Economia i Empresa and CRES, Universitat Pompeu Fabra, Barcelona, Spain)

  • Angel López Nicolás
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    Abstract

    This paper investigates the relationship between health shocks and labour outcomes in the Spanish population using the European Community Household Panel. In order to control for the non-experimental nature of the data we use difference in difference and matching techniques. Our results suggest that there is a significant effect running from health to the probability of employment and to labour income. Moreover, while we cannot investigate the influence of childhood events and other phenomena that trigger long run causal pathways from socio-economic status to health, we are able to find a significant reduction in the probability of reporting good health in individuals who transit out of employment in comparison with individuals who are otherwise identical in terms of reported health status at the time of the transition. Copyright © 2006 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/hec.1151
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

    Volume (Year): 15 (2006)
    Issue (Month): 9 ()
    Pages: 997-1009

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    Handle: RePEc:wly:hlthec:v:15:y:2006:i:9:p:997-1009

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    Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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    1. James P. Smith, 2004. "Unravelling the SES health connection," IFS Working Papers, Institute for Fiscal Studies W04/02, Institute for Fiscal Studies.
    2. Richard Blundell & Monica Costa Dias, 2002. "Alternative approaches to evaluation in empirical microeconomics," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP10/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    3. Jeffrey M Wooldridge, 2002. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    4. Blundell, Richard William & Costa Dias, Monica & Meghir, Costas & Van Reenen, John, 2003. "Evaluating the Employment Impact of a Mandatory Job Search Programme," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3786, C.E.P.R. Discussion Papers.
    5. Lechner, Michael & Vazquez-Alvarez, Rosalia, 2003. "The Effect of Disability on Labour Market Outcomes in Germany: Evidence from Matching," IZA Discussion Papers 967, Institute for the Study of Labor (IZA).
    6. Anne Case & Darren Lubotsky & Christina Paxson, 2001. "Economic Status and Health in Childhood: The Origins of the Gradient," NBER Working Papers 8344, National Bureau of Economic Research, Inc.
    7. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, StataCorp LP, vol. 2(4), pages 358-377, November.
    8. Pilar García Gómez & Ángel López, 2004. "Socio-economic inequalities in health in Catalonia," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 758, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2005.
    9. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0283, National Bureau of Economic Research, Inc.
    10. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 65(2), pages 261-94, April.
    11. Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana Prieto, . "A sequential model for older workers’ labor transitions after a health shock," Working Papers 2005-23, FEDEA.
    12. Markus Frölich & Almas Heshmati & Michael Lechner, 2004. "A microeconometric evaluation of rehabilitation of long-term sickness in Sweden," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 19(3), pages 375-396.
    13. Pilar García Gómez & Ángel López, 2004. "Regional differences in socio-economic health inequalities in Spain," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 757, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2004.
    14. (*), Nigel Rice & Paul Contoyannis, 2001. "The impact of health on wages: Evidence from the British Household Panel Survey," Empirical Economics, Springer, Springer, vol. 26(4), pages 599-622.
    15. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, StataCorp LP, vol. 4(3), pages 290-311, September.
    16. Richard Disney & Carl Emmerson & Matthew Wakefield, 2003. "Ill health and retirement in Britain: a panel data based analysis," IFS Working Papers, Institute for Fiscal Studies W03/02, Institute for Fiscal Studies.
    17. Eddy van Doorslaer & Xander Koolman, 2004. "Explaining the differences in income-related health inequalities across European countries," Health Economics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 13(7), pages 609-628.
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    Cited by:
    1. Stefanie Schurer, 2008. "Discrete Heterogeneity in the Impact of Health Shocks on Labour Market Outcomes," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0071, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    2. García-Gómez, Pilar & Jones, Andrew M. & Rice, Nigel, 2010. "Health effects on labour market exits and entries," Labour Economics, Elsevier, Elsevier, vol. 17(1), pages 62-76, January.
    3. González Álvarez, Mª Luz & Gamero-Burón, Carlos, 2013. "Coste de las visitas médicas y urgencias asociadas al estrés laboral en España/Health Care Costs Due to Job Stress in Spain," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 417-444, Septiembr.
    4. García-Gómez, Pilar, 2011. "Institutions, health shocks and labour market outcomes across Europe," Journal of Health Economics, Elsevier, Elsevier, vol. 30(1), pages 200-213, January.
    5. Pilar García-Gómez & Hans-Martin Gaudecker & Maarten Lindeboom, 2011. "Health, disability and work: patterns for the working age population," International Tax and Public Finance, Springer, Springer, vol. 18(2), pages 146-165, April.

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