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Losing Heart? The Effect of Job Displacement on Health

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

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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18660.

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Date of creation: Dec 2012
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Handle: RePEc:nbr:nberwo:18660

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References

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  1. Browning, Martin & Heinesen, Eskil, 2012. "Effect of job loss due to plant closure on mortality and hospitalization," Journal of Health Economics, Elsevier, Elsevier, vol. 31(4), pages 599-616.
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  6. 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).
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  15. Burda, Michael C. & Mertens, Antje, 2001. "Estimating wage losses of displaced workers in Germany," Labour Economics, Elsevier, Elsevier, vol. 8(1), pages 15-41, January.
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  17. 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, Verein für Socialpolitik / German Economic Association 48695, Verein für Socialpolitik / German Economic Association.
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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. Hallberg, Daniel & Johansson, Per & Josephson, Malin, 2014. "Early retirement and post retirement health," Working Paper Series, Center for Labor Studies, Uppsala University, Department of Economics 2014:5, Uppsala University, Department of Economics.
  2. Venke Furre Haaland & Kjetil Telle, 2013. "Pro-cyclical mortality. Evidence from Norway," Discussion Papers, Research Department of Statistics Norway 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, Department of Economics, University of York 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, Human Capital and Economic Opportunity Working Group 2013-016, Human Capital and Economic Opportunity Working Group.
  5. 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, Elsevier, vol. 106(C), pages 28-34.

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