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Health Shocks, Human Capital, and Labor Market Outcomes

Author

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  • Francisco Parro

    (Universidad Adolfo Ibáñez)

  • R. Vincent Pohl

    (University of Georgia)

Abstract

Health, human capital, and labor market outcomes are linked though complex connections that are not fully understood. We explore these links by estimating a flexible yet tractable dynamic model of human capital accumulation in the presence of health shocks using administrative data from Chile. We find that (i) human capital mitigates the negative labor market effects of health events, (ii) these alleviating effects operate through channels involving occupational choice, the frequency of exposure to health events, and access to health care, and (iii) the effect of health shocks on labor market outcomes is heterogeneous across industries and types of diagnoses.

Suggested Citation

  • Francisco Parro & R. Vincent Pohl, 2018. "Health Shocks, Human Capital, and Labor Market Outcomes," Upjohn Working Papers 18-290, W.E. Upjohn Institute for Employment Research.
    • Handle: RePEc:upj:weupjo:18-290
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    Cited by:

    1. Mommaerts, Corina & Raza, Syed Hassan & Zheng, Yu, 2020. "The economic consequences of hospitalizations for older workers across countries," The Journal of the Economics of Ageing, Elsevier, vol. 16(C).
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    3. Svetlana Pashchenko & Ponpoje (Poe) Porapakkarm & Mariacristina De Nardi, 2017. "The Lifetime Costs of Bad Health," 2017 Meeting Papers 533, Society for Economic Dynamics.

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    More about this item

    Keywords

    health shocks; hospitalizations; labor market outcomes; earnings; human capital;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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