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Institutions, health shocks and labour outcomes across Europe

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  • Pilar García Gómez

Abstract

This paper investigates the relationship between health shocks and labour outcomes in 9 European countries using the European Community Household Panel. In order to control for the non-experimental nature of the data I use matching and matching combined with difference-in-differences techniques. My results suggest that there is a significant effect running from health to the probability of employment and to income: individuals who suffer a health shock are significantly more likely to leave employment, and in several countries this is associated to a significant reduction in some types of income. There are differences in the estimates across countries, with the largest employment effects being found in the Netherlands, Denmark and Ireland, and the smallest in France, Italy and Greece. The differences in Social Security arrangements help to explain the differences in the estimates for the effects of the health shocks.

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Bibliographic Info

Paper provided by FEDEA in its series Working Papers with number 2008-01.

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Date of creation: Jan 2008
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Handle: RePEc:fda:fdaddt:2008-01

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  1. Lechner, Michael, 1996. "An Evaluation of Public Sector Sponsored Continuous Vocational Training Programs in East Germany," Discussion Papers, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre 539, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  2. 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.
  3. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
  4. Blundell, Richard & Costa Dias, Monica, 2008. "Alternative Approaches to Evaluation in Empirical Microeconomics," IZA Discussion Papers 3800, Institute for the Study of Labor (IZA).
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  6. Regina T. Riphahn, 1999. "Income and employment effects of health shocks A test case for the German welfare state," Journal of Population Economics, Springer, Springer, vol. 12(3), pages 363-389.
  7. Sergi Jiménez-Mart�n & José M. Labeaga & Cristina Vilaplana Prieto, 2006. "A sequential model of older workers' labor force transitions after a health shock," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 1033-1054.
  8. Anne Moller Dano, 2005. "Road injuries and long-run effects on income and employment," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 955-970.
  9. 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.
  10. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, MIT Press, vol. 2(4), pages 569-606, 06.
  11. John Bound & Michael Schoenbaum & Todd R. Stinebrickner & Timothy Waidmann, 1998. "The Dynamic Effects of Health on the Labor Force Transitions of Older Workers," NBER Working Papers 6777, National Bureau of Economic Research, Inc.
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Cited by:
  1. 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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