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Does job loss cause ill health?

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  • Martin Salm

    (Department of Econometrics and OR, Tilburg University, Tilburg, Netherlands)

Abstract

This study estimates the effect of job loss on health for near elderly employees based on longitudinal data from the Health and Retirement Study. Previous studies find a strong negative correlation between unemployment and health. To control for possible reverse causality, this study focuses on people who were laid off for an exogenous reason - the closure of their previous employers' business. I find no causal effect of exogenous job loss on various measures of physical and mental health. This suggests that the inferior health of the unemployed compared to the employed could be explained by reverse causality. Copyright © 2009 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1537
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Bibliographic Info

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

Volume (Year): 18 (2009)
Issue (Month): 9 ()
Pages: 1075-1089

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Handle: RePEc:wly:hlthec:v:18:y:2009:i:9:p:1075-1089

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

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  11. Chan Sewin & Stevens Ann H, 2004. "How Does Job Loss Affect the Timing of Retirement?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, De Gruyter, vol. 3(1), pages 1-26, May.
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  14. Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 19(2), pages 484-521, April.
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