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Is unemployment and low income harmful to health? Evidence from Britain

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  • David Cooper
  • W.D. McCausland
  • Ioannis Theodossiou

Abstract

This study investigates how unemployment and income influence the length of time an individual remains in good health. This is a complex relationship since unemployment or low income deteriorates health but poor health can become a barrier to obtaining higher income or gaining re-employment. Data are from the British Household Panel Survey, using two measures of physical health: an index of mobility problems and a measure of self-assessed health. The results show that unemployment, low income and poor education adversely affect the time that people remain in good health. These results have important implications for public policy, particularly in an age of austerity when social protection mechanisms are under threat. In fact, the results suggest that to improve health and reduce health inequality, more investment needs to be directed at policies that enhance labour force participation, improve education and reduce income inequality.

Suggested Citation

  • David Cooper & W.D. McCausland & Ioannis Theodossiou, 2015. "Is unemployment and low income harmful to health? Evidence from Britain," Review of Social Economy, Taylor & Francis Journals, vol. 73(1), pages 34-60, March.
    • Handle: RePEc:taf:rsocec:v:73:y:2015:i:1:p:34-60
    DOI: 10.1080/00346764.2014.986969
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    Cited by:

    1. Picchio, Matteo & Ubaldi, Michele, 2022. "Unemployment and Health: A Meta-Analysis," GLO Discussion Paper Series 1128, Global Labor Organization (GLO).
    2. William A. Jackson, 2015. "Distributive Justice With and Without Culture," Journal of Cultural Economy, Taylor & Francis Journals, vol. 8(6), pages 673-688, December.
    3. Dearden, Emily K. & Lloyd, Christopher D. & Catney, Gemma, 2019. "A spatial analysis of health status in Britain, 1991–2011," Social Science & Medicine, Elsevier, vol. 220(C), pages 340-352.

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