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The impact of health events on individual labor market histories : the message from difference in differences with exact matching

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  • Emmanuelle Duguet
  • Christine Le Clainche

Abstract

We studied the effect of health events (accidents and chronic diseases) on the occupation probabilities at the individual level, while accounting for both correlated individual and time effects. Using difference-in-differences with exact matching estimators, we found that health events have a strong impact on individual labor market histories. The workers affected by a health event have a stronger probability of entering inactivity and a lower probability of keeping their jobs. We also found that the less qualified workers, women, and workers with short term jobs are the most negatively affected by health events.

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File URL: http://www.lameta.univ-montp1.fr/Documents/DR2012-08.pdf
File Function: First version, 2012
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Paper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 12-08.

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Length: 16 pages
Date of creation: Mar 2012
Date of revision: Mar 2012
Handle: RePEc:lam:wpaper:12-08

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  1. Haan, Peter & Myck, Michal, 2009. "Dynamics of Poor Health and Non-Employment," IZA Discussion Papers 4154, Institute for the Study of Labor (IZA).
  2. Alain Trannoy & Sandy Tubeuf & Florence Jusot & Marion Devaux, 2010. "Inequality of opportunities in health in France: a first pass," Health Economics, John Wiley & Sons, Ltd., vol. 19(8), pages 921-938, August.
  3. Luc Behaghel & Didier Blanchet & Thierry Debrand & Muriel Roger, 2012. "Disability and Social Security Reforms: The French Case," NBER Chapters, in: Social Security Programs and Retirement around the World: Historical Trends in Mortality and Health, Employment, and Disability Insurance Participatio, pages 301-326 National Bureau of Economic Research, Inc.
  4. 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.
  5. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr.
  6. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
  7. Thierry Debrand & Nicolas Sirven, 2009. "What are the Motivations of Pathways to Retirement in Europe: Individual, Familial, Professional Situation or Social Protection Systems?," Working Papers DT28, IRDES institut for research and information in health economics, revised Oct 2009.
  8. Didier Blanchet & Thierry Debrand, 2007. "Souhaiter prendre sa retraite le plus tôt possible : santé, satisfaction au travail et facteurs monétaires," Économie et Statistique, Programme National Persée, vol. 403(1), pages 39-62.
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