Does Job Loss Cause Ill Health?
AbstractThis 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 that the unemployed are in worse health than employees, and that health reasons are a common cause of job termination. In contrast, 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.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4147.
Length: 35 pages
Date of creation: Apr 2009
Date of revision:
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Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
This paper has been announced in the following NEP Reports:
- NEP-AGE-2009-05-23 (Economics of Ageing)
- NEP-ALL-2009-05-23 (All new papers)
- NEP-HAP-2009-05-23 (Economics of Happiness)
- NEP-HEA-2009-05-23 (Health Economics)
- NEP-LAB-2009-05-23 (Labour Economics)
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