IDEAS home Printed from
   My bibliography  Save this article

Continuous-Time Markov Model for Transitions Between Employment and Non-Employment: The Impact of a Cancer Diagnosis


  • Xavier Joutard
  • Alain Paraponaris
  • Luis Sagaon-Teyssier
  • Bruno Ventelou


This article investigates whether a cancer diagnosis can cause a permanent loss in employability. In this regard, we evaluate the impact of cancer on labor market conditions by constructing transition matrices to compare the transitions between occupational states. We obtain a set of statistics based on our estimations by using continuous-time Markov transition processes to study and compare the labor market dynamics in two populations: 1) individuals diagnosed with cancer and 2) individuals free of cancer in the general population. The consequences of cancer diagnosis were measured by the significant deviation in the transition matrix for cancer survivors in comparison to the prior matrix standardized according to the general population. We accounted for the probability that some individuals in the control group (i.e., the general population) could be diagnosed with cancer which is a key-issue in case-control studies. The absence of detailed information about the health statuses of the individuals in the control group required the implementation of the EM algorithm for maximizing the adapted likelihood function. We jointly estimated the probability of being diagnosed with cancer in the control group and the parameters of our model. Given that individuals are exposed differently to cancer depending on their activities, we stratified the dataset by socioeconomic status (SES) for two reasons: 1) to clearly distinguish between the cancer-specific effects and 2) to account for the other stigmatizing factors in the labor market that are inherent to the examined subpopulations (i.e., low- and high-SES groups). We also considered the systematic differences in the subjects' socioeconomic statuses and their abilities to return to work. We determined whether these differences are related to illness (e.g., cancer sites or prognosis) or occupation (e.g., physical demands).

Suggested Citation

  • Xavier Joutard & Alain Paraponaris & Luis Sagaon-Teyssier & Bruno Ventelou, 2012. "Continuous-Time Markov Model for Transitions Between Employment and Non-Employment: The Impact of a Cancer Diagnosis," Annals of Economics and Statistics, GENES, issue 107-108, pages 239-265.
  • Handle: RePEc:adr:anecst:y:2012:i:107-108:p:239-265

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. repec:adr:anecst:y:1998:i:49-50:p:19 is not listed on IDEAS
    2. Hall, Bronwyn H & Ziedonis, Rosemarie Ham, 2001. "The Patent Paradox Revisited: An Empirical Study of Patenting in the U.S. Semiconductor Industry, 1979-1995," RAND Journal of Economics, The RAND Corporation, vol. 32(1), pages 101-128, Spring.
    3. Monjon, Stephanie & Waelbroeck, Patrick, 2003. "Assessing spillovers from universities to firms: evidence from French firm-level data," International Journal of Industrial Organization, Elsevier, vol. 21(9), pages 1255-1270, November.
    4. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-1137, December.
    5. Petra Moser, 2005. "How Do Patent Laws Influence Innovation? Evidence from Nineteenth-Century World's Fairs," American Economic Review, American Economic Association, vol. 95(4), pages 1214-1236, September.
    6. F. M. Scherer, 1998. "The Size Distribution of Profits from Innovation," Annals of Economics and Statistics, GENES, issue 49-50, pages 495-516.
    7. Emmanuel Duguet & Isabelle Kabla, 1998. "Appropriation Strategy and the Motivations to Use the Patent System: An Econometric Analysis at the Firm Level in French Manufacturing," Annals of Economics and Statistics, GENES, issue 49-50, pages 289-327.
    8. repec:adr:anecst:y:1998:i:49-50:p:11 is not listed on IDEAS
    9. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    10. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    11. repec:dau:papers:123456789/13785 is not listed on IDEAS
    12. Hajivassiliou, Vassilis & McFadden, Daniel & Ruud, Paul, 1996. "Simulation of multivariate normal rectangle probabilities and their derivatives theoretical and computational results," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 85-134.
    13. Pakes, Ariel S, 1986. "Patents as Options: Some Estimates of the Value of Holding European Patent Stocks," Econometrica, Econometric Society, vol. 54(4), pages 755-784, July.
    14. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
    15. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1988. "Appropriating the Returns from Industrial R&D," Cowles Foundation Discussion Papers 862, Cowles Foundation for Research in Economics, Yale University.
    16. James Bessen & Eric Maskin, 2009. "Sequential innovation, patents, and imitation," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 611-635.
    17. repec:adr:anecst:y:1998:i:49-50 is not listed on IDEAS
    18. Jorde, Thomas M & Teece, David J, 1990. "Innovation and Cooperation: Implications for Competition and Antitrust," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 75-96, Summer.
    19. Mariko Sakakibara & Lee Branstetter, 1999. "Do Stronger Patents Induce More Innovation? Evidence from the 1988 Japanese Patent Law Reforms," NBER Working Papers 7066, National Bureau of Economic Research, Inc.
    20. Arora, Ashish & Ceccagnoli, Marco & Cohen, Wesley M., 2008. "R&D and the patent premium," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1153-1179, September.
    21. repec:adr:anecst:y:1991:i:20-21:p:04 is not listed on IDEAS
    22. Walter G. Park & Juan Carlos Ginarte, 1997. "Intellectual Property Rights And Economic Growth," Contemporary Economic Policy, Western Economic Association International, vol. 15(3), pages 51-61, July.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Thomas Barnay & Mohamed Ali Ben Halima & Emmanuel Duguet & Joseph Lanfranchi & Christine Le Clainche, 2015. "La survenue du cancer : effets de court et moyen termes sur l'emploi, le chômage et les arrêts maladie," Économie et Statistique, Programme National Persée, vol. 475(1), pages 157-186.
    2. Thomas Barnay, 2016. "Health, work and working conditions: a review of the European economic literature," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(6), pages 693-709, July.
    3. Thomas Barnay & Mohamed Ali Ben Halima & Emmanuel Duguet & Christine Le Clainche & Camille Regaert, 2016. "The effects of breast cancer on individual labour market outcomes: an evaluation from an administrative panel," TEPP Working Paper 2016-05, TEPP.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2012:i:107-108:p:239-265. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurent Linnemer). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.