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Healthcare utilization and labour market responses to health shocks

Author

Listed:
  • Hsuan‐Chih (Luke) Lin
  • Atsuko Tanaka
  • Heng‐Jui Chang
  • Chih‐Han Hsueh

Abstract

This paper examines the long‐term impacts of negative health shocks on healthcare utilization and labour market outcomes by applying a dynamic difference‐in‐differences estimator to a sample of heart attack and stroke survivors in Taiwan. To investigate who is more affected by these health shocks, we estimate differential effects by age, healthcare utilization, and income. We find that low‐income individuals are less likely to survive but more likely to utilize healthcare and remain employed after the health shocks, indicating the existence of a socioeconomic health gradient. Moreover, nonemployed workers are more likely to start working, which could be attributed to increased financial needs following the health shocks. Building upon our empirical findings, we conduct counterfactual assessments to evaluate health‐enhancing policies from a social perspective. Utilisation des services de santé et réactions du marché du travail aux incidents de santé. Cet article examine les effets à long terme des incidents de santé négatifs sur l'utilisation des services de santé et les résultats sur le marché du travail en appliquant un estimateur dynamique des doubles différences sur un échantillon de survivants de crises cardiaques et d'accidents vasculaires cérébraux à Taïwan. Afin de caractériser les personnes les plus touchées par ces incidents de santé, nous estimons les effets différentiels en fonction de l'âge, de l'utilisation des services de santé et du revenu. Nous constatons que les gens à faible revenu ont moins de probabilité de survivre, mais qu'ils sont plus susceptibles de recourir aux services de santé et de conserver leur emploi après un incident, ce qui indique l'existence d'un gradient de santé socioéconomique. De plus, les travailleurs sans emploi sont plus susceptibles de commencer à travailler, ce qui pourrait être dû à une augmentation des besoins financiers à la suite de l'incident. Sur la base de nos résultats empiriques, nous procédons à des évaluations contrefactuelles afin d'évaluer les politiques d'amélioration de la santé d'un point de vue social.

Suggested Citation

  • Hsuan‐Chih (Luke) Lin & Atsuko Tanaka & Heng‐Jui Chang & Chih‐Han Hsueh, 2025. "Healthcare utilization and labour market responses to health shocks," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 58(3), pages 1147-1178, August.
  • Handle: RePEc:wly:canjec:v:58:y:2025:i:3:p:1147-1178
    DOI: 10.1111/caje.70014
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    References listed on IDEAS

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