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Job Displacement and Health Outcomes: A Representative Panel Study

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Author Info

  • Martin Browning

    (Institute of Economics, University of Copenhagen)

  • Anne Møller Danø

    (Institute of Local Government Studies, Copenhagen, Denmark)

  • Eskil Heinesen

    (Institute of Local Government Studies, Copenhagen, Denmark)

Abstract

We investigate whether job loss as the result of displacement causes ill health. In doing this we use much better data than any previous investigators. Our data are a random 10% sample of the adult population of Denmark for the years 1981-1999. For this large representative panel we have very full records on demographics, health and work status for each person throughout the data period. As well as this we can link every person to a firm (if they are working) and can identify all workers who are displaced in any year, using a variety of definitions of displacement. We focus on one very precise health outcome, hospitalisation for stress related disease, since this is a grave condition and is widely thought to be likely to be associated with unemployment. We use the method of ‘matching on observables’ to estimate the counter-factual of what would have happened to the health of a particular group of displaced workers if they had not in fact been displaced. Our results indicate unequivocally that being displaced in Denmark does not cause hospitalisation for stress related disease. An analysis of the power of our test suggests that even though we are looking for a relatively rare outcome, our data set is large enough to show even quite small an effect if there were any. Supplementary analyses do not show any causal link from displacement or unemployment to our health outcomes for particular groups that might be thought to be more susceptible.

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File URL: http://www.econ.ku.dk/cam/wp0910/wp0203/2003-14.pdf/
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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics in its series CAM Working Papers with number 2003-14.

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Length: 36 pages
Date of creation: Nov 2003
Date of revision:
Handle: RePEc:kud:kuieca:2003_14

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Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark
Phone: (45) 35 32 30 74
Fax: +45 35 32 30 00
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Web page: http://www.econ.ku.dk/CAM/
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Related research

Keywords: unemployment; job displacement; health; matching on observables;

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References

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  1. Lechner, Michael, 1999. "An Evaluation of Public-Sector-Sponsored Continuous Vocational Training Programs in East Germany," IZA Discussion Papers 93, Institute for the Study of Labor (IZA).
  2. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
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Citations

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Cited by:
  1. Namkee Ahn & Juan Ramón García & Juan F. Jimeno, . "Well-being Consequences of Unemployment in Europe," Working Papers 2004-11, FEDEA.
  2. Morten Henningsen & Torbjørn Hægeland, 2008. "Downsizing as a sorting device. Are low-productive workers more likely to leave downsizing firms?," Discussion Papers 543, Research Department of Statistics Norway.
  3. Ana Llena-Nozal & Maarten Lindeboom & France Portrait, 2004. "The effect of work on mental health: does occupation matter?," Health Economics, John Wiley & Sons, Ltd., vol. 13(10), pages 1045-1062.

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