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Losing Heart? The Effect of Job Displacement on Health

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  • Black, Sandra
  • Devereux, Paul J.
  • Salvanes, Kjell G

Abstract

Job reallocation is considered to be a key characteristic of well-functioning labor markets, as more productive firms grow and less productive ones contract or close. However, despite its potential benefits for the economy, there are significant costs that are borne by displaced workers. We study how job displacement in Norway affects cardiovascular health using a sample of men and women who are predominantly aged in their early forties. To do so we merge survey data on health and health behaviors with register data on person and firm characteristics. We track the health of displaced and non-displaced workers from 5 years before to 7 years after displacement. We find that job displacement has a negative effect on the health of both men and women. Importantly, much of this effect is driven by an increase in smoking behavior. These results are robust to a variety of specification checks.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9276.

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Date of creation: Jan 2013
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Handle: RePEc:cpr:ceprdp:9276

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Keywords: Employment and Health; Job Displacement;

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References

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  1. Eliason, Marcus & Storrie, Donald, 2004. "The Echo of Job Displacement," Working Papers in Economics 135, University of Gothenburg, Department of Economics.
  2. Petri Böckerman & Pekka Ilmakunnas, 2009. "Unemployment and self-assessed health: evidence from panel data," Health Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 161-179.
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  7. Jan Marcus, 2012. "Does Job Loss Make You Smoke and Gain Weight?," SOEPpapers on Multidisciplinary Panel Data Research 432, DIW Berlin, The German Socio-Economic Panel (SOEP).
  8. Eliason, Marcus & Storrie, Donald, 2009. "Job loss is bad for your health - Swedish evidence on cause-specific hospitalization following involuntary job loss," Social Science & Medicine, Elsevier, vol. 68(8), pages 1396-1406, April.
  9. Martin Browning & Anne Moller Dano & Eskil Heinesen, 2006. "Job displacement and stress-related health outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 15(10), pages 1061-1075.
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  11. Christopher J. Ruhm, 1996. "Are Recessions Good For Your Health?," NBER Working Papers 5570, National Bureau of Economic Research, Inc.
  12. Bergemann, Annette & Grönqvist, Erik & Gudbjörnsdottir, Soffia, 2011. "The effects of job displacement on the onset and progression of diabetes," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48695, Verein für Socialpolitik / German Economic Association.
  13. Kate Strully, 2009. "Job loss and health in the U.S. labor market," Demography, Springer, vol. 46(2), pages 221-246, May.
  14. 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.
  15. Daniel Sullivan & Till von Wachter, 2009. "Job Displacement and Mortality: An Analysis Using Administrative Data," The Quarterly Journal of Economics, MIT Press, vol. 124(3), pages 1265-1306, August.
  16. William T. Gallo & Elizabeth H. Bradley & Stanislav V. Kasl, 2001. "The Effect of Job Displacement on Subsequent Health," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 159-165.
  17. Tinna Laufey Ásgeirsdóttir & Hope Corman & Kelly Noonan & Þórhildur Ólafsdóttir & Nancy E. Reichman, 2012. "Are Recessions Good for Your Health Behaviors? Impacts of the Economic Crisis in Iceland," NBER Working Papers 18233, National Bureau of Economic Research, Inc.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Losing Heart? The Effect of Job Displacement on Health
    by maximorossi in NEP-LTV blog on 2013-02-27 13:00:36
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Kalousova, Lucie & Burgard, Sarah A., 2014. "Unemployment, measured and perceived decline of economic resources: Contrasting three measures of recessionary hardships and their implications for adopting negative health behaviors," Social Science & Medicine, Elsevier, vol. 106(C), pages 28-34.
  2. Venke Furre Haaland & Kjetil Telle, 2013. "Pro-cyclical mortality. Evidence from Norway," Discussion Papers 766, Research Department of Statistics Norway.
  3. Emma Tominey, 2013. "Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock," Discussion Papers 13/11, Department of Economics, University of York.
  4. Emma Tominey, 2013. "Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock," Working Papers 2013-016, Human Capital and Economic Opportunity Working Group.
  5. Hallberg, Daniel & Johansson, Per & Josephson, Malin, 2014. "Early retirement and post retirement health," Working Paper Series 2014:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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