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Health shocks, disability and work

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  • Lindeboom, Maarten
  • Llena-Nozal, Ana
  • van der Klaauw, Bas

Abstract

This paper focuses on the relation between health shocks and the onset of a disability and employment outcomes. We estimate an event-history model using data from the British National Child Development Study (NCDS), where accidents causing a unscheduled hospitalization are the measure for unanticipated health shocks. Our results show that experiencing such a health shock substantially increases the likelihood of the onset of a disability, while it does not have direct effects on employment at later ages. This finding is used to simulate the causal effects of the onset of a disability on later employment outcomes. These simulations show that about two-third of the association between disability and employment can be explained by the causal effect of the onset of a disability on employment. The remaining one-third is selection. For men and lower-educated workers the association is mainly explained by the causal effect, while for women selection is more important.

Suggested Citation

  • Lindeboom, Maarten & Llena-Nozal, Ana & van der Klaauw, Bas, 2016. "Health shocks, disability and work," Labour Economics, Elsevier, vol. 43(C), pages 186-200.
  • Handle: RePEc:eee:labeco:v:43:y:2016:i:c:p:186-200
    DOI: 10.1016/j.labeco.2016.06.010
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    References listed on IDEAS

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