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Quantile treatment effects of job loss on health

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  • Schiele, Valentin
  • Schmitz, Hendrik

Abstract

Studies on health effects of job loss mostly estimate mean effects. We argue that the effects might differ over the distribution of the health status and use quantile regression methods to provide a more complete picture. To take the potential endogeneity of job loss into account, we estimate quantile treatment effects where we rely on job loss due to plant closures. We find that the effect of job loss indeed varies across the mental and physical health distribution. Job loss due to plant closures affects physical health adversely for individuals in the middle and lower part of the health distribution while those in best physical condition do not seem to be affected. The results for mental health, though less distinct, point in the same direction. We find no effects on BMI.

Suggested Citation

  • Schiele, Valentin & Schmitz, Hendrik, 2016. "Quantile treatment effects of job loss on health," Journal of Health Economics, Elsevier, vol. 49(C), pages 59-69.
  • Handle: RePEc:eee:jhecon:v:49:y:2016:i:c:p:59-69
    DOI: 10.1016/j.jhealeco.2016.06.005
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    3. Everding, Jakob & Marcus, Jan, 2020. "The effect of unemployment on the smoking behavior of couples," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 154-170.
    4. Reichert, Arndt R. & Tauchmann, Harald, 2017. "Workforce reduction, subjective job insecurity, and mental health," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 187-212.
    5. Huong Thu Le & Ha Trong Nguyen, 2018. "The Impact of Maternal Mental Health Shocks on Child Health: Estimates from Fixed-Effects Instrumental Variables Models for Two Cohorts of Australian Children," American Journal of Health Economics, University of Chicago Press, vol. 4(2), pages 185-225, Spring.
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    7. Avdic, Daniel & de New, Sonja C. & Kamhöfer, Daniel A., 2021. "Economic downturns and mental health in Germany," European Economic Review, Elsevier, vol. 140(C).
    8. Alexander Silbersdorff & Julia Lynch & Stephan Klasen & Thomas Kneib, 2018. "Reconsidering the income‐health relationship using distributional regression," Health Economics, John Wiley & Sons, Ltd., vol. 27(7), pages 1074-1088, July.
    9. Jianbo Luo, 2020. "A Pecuniary Explanation for the Heterogeneous Effects of Unemployment on Happiness," Journal of Happiness Studies, Springer, vol. 21(7), pages 2603-2628, October.
    10. Lars Kunze & Nicolai Suppa, 2020. "Who Is Bowling Alone? Quantile Treatment Effects of Unemployment on Social Participation," SOEPpapers on Multidisciplinary Panel Data Research 1077, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Rocco, Lorenzo & Crema, Angela & Simonato, Lorenzo & Cestari, Laura, 2018. "The effect of job loss on pharmaceutical prescriptions," Social Science & Medicine, Elsevier, vol. 217(C), pages 73-83.
    12. Ziebarth, Nicolas R., 2017. "Social Insurance and Health," IZA Discussion Papers 10918, Institute of Labor Economics (IZA).
    13. Freise, Diana & Schmitz, Hendrik & Westphal, Matthias, 2022. "Late-career unemployment and cognitive abilities," Journal of Health Economics, Elsevier, vol. 86(C).
    14. Tian, Xinping & Gong, Jinquan & Zhang, Yueqiu, 2018. "The effects of job displacement on health: Evidence from the economic restructuring in urban China," China Economic Review, Elsevier, vol. 52(C), pages 136-150.
    15. Matthew D. Baird & Jonathan Cantor & Wendy M. Troxel & Tamara Dubowitz, 2022. "Job loss and psychological distress during the COVID‐19 pandemic: Longitudinal Analysis from residents in nine predominantly African American low‐income neighborhoods," Health Economics, John Wiley & Sons, Ltd., vol. 31(9), pages 1844-1861, September.
    16. Dahmann, Sarah C. & Schnitzlein, Daniel D., 2019. "No evidence for a protective effect of education on mental health," Social Science & Medicine, Elsevier, vol. 241(C).
    17. Alexander Silbersdorff & Julia Lynch & Stephan Klasen & Thomas Kneib, 2017. "Reconsidering the Income-Illness Relationship using Distributional Regression: An Application to Germany," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 231, Courant Research Centre PEG.
    18. Daniel Avdic & Sonja C. de New & Daniel A. Kamhöfer, 2020. "Economic Downturns and Mental Wellbeing," SOEPpapers on Multidisciplinary Panel Data Research 1081, DIW Berlin, The German Socio-Economic Panel (SOEP).
    19. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).
    20. Kong, Nancy & Osberg, Lars & Zhou, Weina, 2019. "The shattered “Iron Rice Bowl”: Intergenerational effects of Chinese State-Owned Enterprise reform," Journal of Health Economics, Elsevier, vol. 67(C).
    21. Been, J.; & Suari-Andreu, E.; & Knoef, M.;, 2022. "The short-run effects of unexpected job loss on health," Health, Econometrics and Data Group (HEDG) Working Papers 22/21, HEDG, c/o Department of Economics, University of York.

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    More about this item

    Keywords

    Job loss; Health; BMI; Plant closure; Quantile treatment effects;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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