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Institutions, health shocks and labour market outcomes across Europe

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  • García-Gómez, Pilar

Abstract

This paper investigates the relationship between health shocks and labour market outcomes in 9 European countries using the European Community Household Panel. Matching techniques are used to control for the non-experimental nature of the data. The results suggest that there is a significant causal effect from health on the probability of employment: individuals who incur a health shock are significantly more likely to leave employment and transit into disability. The estimates differ across countries, with the largest employment effects being found in The Netherlands, Denmark, Spain and Ireland, and the smallest in France and Italy. Differences in social security arrangements help to explain these cross-country differences.

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  • García-Gómez, Pilar, 2011. "Institutions, health shocks and labour market outcomes across Europe," Journal of Health Economics, Elsevier, vol. 30(1), pages 200-213, January.
  • Handle: RePEc:eee:jhecon:v:30:y:2011:i:1:p:200-213
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    Cited by:

    1. Jones, Andrew M. & Rice, Nigel & Zantomio, Francesca, 2020. "Acute health shocks and labour market outcomes: Evidence from the post crash era," Economics & Human Biology, Elsevier, vol. 36(C).
    2. Mareva Sabatier & Bérangère Legendre, 2017. "The puzzle of older workers’ employment: distance to retirement and health effects," International Journal of Manpower, Emerald Group Publishing, vol. 38(1), pages 45-61, April.
    3. Leonie Sundmacher, 2012. "The effect of health shocks on smoking and obesity," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(4), pages 451-460, August.
    4. Antoine Marsaudon & Lise Rochaix, 2017. "Impact of acute health shocks on cigarette consumption
      [Impact d'un choc de santé sur la consommation de cigarette]
      ," PSE Working Papers halshs-01626024, HAL.
    5. Thomas Barnay & Emmanuel Duguet & Christine Le Clainche & Mathieu Narcy & Yann Videau, 2014. "L’impact du handicap sur les trajectoires d’emploi : une comparaison public-privé," Working Papers hal-01076896, HAL.
    6. Jones, M.A. & Rice, N. & Zantomio, F., 2016. "Acute health shocks and labour market outcomes," Health, Econometrics and Data Group (HEDG) Working Papers 16/04, HEDG, c/o Department of Economics, University of York.
    7. 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.
    8. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    9. Terhi Maczulskij & Petri Böckerman, 2019. "Harsh times: do stressors lead to labor market losses?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(3), pages 357-373, April.
    10. Trevisan, Elisabetta & Zantomio, Francesca, 2016. "The impact of acute health shocks on the labour supply of older workers: Evidence from sixteen European countries," Labour Economics, Elsevier, vol. 43(C), pages 171-185.
    11. Antoine Marsaudon & Lise Rochaix, 2010. "Impact of acute health shocks on cigarette consumption: A combined DiD-matching strategy to address endogeneity issues in the French Gazel panel data," Working Papers halshs-01626187, HAL.
    12. Kolodziej, Ingo W.K. & García-Gómez, Pilar, 2017. "The causal effects of retirement on mental health: Looking beyond the mean effects," Ruhr Economic Papers 668, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Candon, David, 2018. "The effect of cancer on the labor supply of employed men over the age of 65," Economics & Human Biology, Elsevier, vol. 31(C), pages 184-199.
    14. Nicolas Sirven & Thomas Barnay, 2017. "Expectations, loss aversion and retirement decisions in the context of the 2009 crisis in Europe," International Journal of Manpower, Emerald Group Publishing, vol. 38(1), pages 25-44, April.
    15. Emmanuel Duguet & Christine Le Clainche, 2020. "The Socioeconomic and Gender Impacts of Health Events on Employment Transitions in France: A Panel Data Study," Journal of Human Capital, University of Chicago Press, vol. 14(3), pages 449-483.
    16. Eric Delattre & Richard K. Moussa & Mareva Sabatier, 2019. "Health condition and job status interactions: econometric evidence of causality from a French longitudinal survey," Health Economics Review, Springer, vol. 9(1), pages 1-18, December.
    17. González Álvarez, Mª Luz & Gamero-Burón, Carlos, 2013. "Coste de las visitas médicas y urgencias asociadas al estrés laboral en España/Health Care Costs Due to Job Stress in Spain," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 417-444, Septiembr.
    18. Nicole Black & Elaine De Gruyter & Dennis Petrie & Sarah Smith, 2020. "Altruism born of suffering? The impact of an adverse health shock on pro-social behaviour," Bristol Economics Discussion Papers 20/736, School of Economics, University of Bristol, UK.
    19. David M. Zimmer, 2015. "Employment Effects Of Health Shocks: The Role Of Fringe Benefits," Bulletin of Economic Research, Wiley Blackwell, vol. 67(4), pages 346-358, October.
    20. Halla, Martin & Zweimüller, Martina, 2013. "The effect of health on earnings: Quasi-experimental evidence from commuting accidents," Labour Economics, Elsevier, vol. 24(C), pages 23-38.
    21. Golo Henseke, 2018. "Good jobs, good pay, better health? The effects of job quality on health among older European workers," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(1), pages 59-73, January.
    22. Zucchelli, E. & Harris, M. & Zhao, X., 2012. "Ill-health and transitions to part-time work and self-employment among older workers," Health, Econometrics and Data Group (HEDG) Working Papers 12/04, HEDG, c/o Department of Economics, University of York.
    23. ZHAO Meng (KONISHI Moe), 2017. "Health-Related Income Gaps and the Effectiveness of Redistributive Policies in Japan," Discussion papers 17039, Research Institute of Economy, Trade and Industry (RIETI).
    24. Jones, Melanie K. & McVicar, Duncan, 2017. "The Dynamics of Disability and Benefit Receipt in Britain," IZA Discussion Papers 11186, Institute of Labor Economics (IZA).
    25. Allanson, Paul & Petrie, Dennis, 2013. "Longitudinal methods to investigate the role of health determinants in the dynamics of income-related health inequality," Journal of Health Economics, Elsevier, vol. 32(5), pages 922-937.

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