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The Impact of Health on Labor Market Outcomes: Evidence from a Large-Scale Health Experiment

Author

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  • Melvin Stephens Jr.
  • Desmond Toohey

Abstract

While economists have posited that health investments increase earnings, isolating the causal effect of health is challenging due to reverse causality and unobserved heterogeneity. We examine the labor market effects of a randomized controlled trial, the Multiple Risk Factor Intervention Trial (MRFIT), which monitored nearly 13,000 men for over six years. We find that this intervention, which provided a bundle of treatments to reduce coronary heart disease mortality, increased earnings and family income. We find few differences in estimated gains by baseline health and occupation characteristics.

Suggested Citation

  • Melvin Stephens Jr. & Desmond Toohey, 2022. "The Impact of Health on Labor Market Outcomes: Evidence from a Large-Scale Health Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 367-399, July.
    • Handle: RePEc:aea:aejapp:v:14:y:2022:i:3:p:367-99
    DOI: 10.1257/app.20180686
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    Citations

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    Cited by:

    1. Jensen, Mathias Fjællegaard & Zhang, Ning, 2024. "Effects of Parental Death on Labor Market Outcomes and Gender Inequalities," IZA Discussion Papers 17127, Institute of Labor Economics (IZA).
    2. N. Meltem Daysal & Mikkel Hasse Pedersen & William N. Evans & Mircea Trandafir, 2022. "Do Medical Treatments Work for Work? Evidence from Breast Cancer Patients," CEBI working paper series 22-23, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    3. Pinna Pintor, Matteo & Fumagalli, Elena & Suhrcke, Marc, 2024. "The impact of health on labour market outcomes: A rapid systematic review," Health Policy, Elsevier, vol. 143(C).
    4. Mette Ejrnæs & Esteban García-Miralles & Mette Gørtz & Petter Lundborg, 2023. "When death was postponed: the effect of hiv medication on work, savings and marriage," Working Papers 2317, Banco de España.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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