IDEAS home Printed from https://ideas.repec.org/a/wly/fistud/v41y2020i2p337-344.html
   My bibliography  Save this article

Recessions and Health: The Long‐Term Health Consequences of Responses to the Coronavirus

Author

Listed:
  • James Banks
  • Heidi Karjalainen
  • Carol Propper

Abstract

The lockdown measures that were implemented in the spring of 2020 to stop the spread of COVID‐19 are having a huge impact on economies in the UK and around the world. In addition to the direct impact of COVID‐19 on health, the following recession will have an impact on people's health outcomes. This paper reviews economic literature on the longer‐run health impacts of business‐cycle fluctuations and recessions. Previous studies show that an economic downturn, which affects people through increased unemployment, lower incomes and increased uncertainty, will have significant consequences on people's health outcomes both in the short and longer term. The health effects caused by these adverse macroeconomic conditions will be complex and will differ across generations, regions and socio‐economic groups. Groups that are vulnerable to poor health are likely to be hit hardest even if the crisis hit all individuals equally, and we already see that some groups such as young workers and women are worse hit by the recession than others. Government policies during and after the pandemic will play an important role in determining the eventual health consequences.

Suggested Citation

  • James Banks & Heidi Karjalainen & Carol Propper, 2020. "Recessions and Health: The Long‐Term Health Consequences of Responses to the Coronavirus," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 337-344, June.
  • Handle: RePEc:wly:fistud:v:41:y:2020:i:2:p:337-344
    DOI: 10.1111/1475-5890.12230
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1475-5890.12230
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1475-5890.12230?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 205-240, October.
    2. Gerard J. van den Berg & Maarten Lindeboom & France Portrait, 2006. "Economic Conditions Early in Life and Individual Mortality," American Economic Review, American Economic Association, vol. 96(1), pages 290-302, March.
    3. Jérôme Adda, 2016. "Economic Activity and the Spread of Viral Diseases: Evidence from High Frequency Data," The Quarterly Journal of Economics, Oxford University Press, vol. 131(2), pages 891-941.
    4. Rachel Griffith & Martin O'Connell & Kate Smith, 2016. "Shopping Around: How Households Adjusted Food Spending Over the Great Recession," Economica, London School of Economics and Political Science, vol. 83(330), pages 247-280, April.
    5. Janet Currie, 2009. "Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital Development," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 87-122, March.
    6. Carol Propper & George Stoye & Ben Zaranko, 2020. "The Wider Impacts of the Coronavirus Pandemic on the NHS," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 345-356, June.
    7. Jérôme Adda & James Banks & Hans-Martin von Gaudecker, 2009. "The Impact of Income Shocks on Health: Evidence from Cohort Data," Journal of the European Economic Association, MIT Press, vol. 7(6), pages 1361-1399, December.
    8. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 617-650.
    9. Justin R. Pierce & Peter K. Schott, 2020. "Trade Liberalization and Mortality: Evidence from US Counties," American Economic Review: Insights, American Economic Association, vol. 2(1), pages 47-64, March.
    10. David Autor & David Dorn & Gordon Hanson, 2019. "When Work Disappears: Manufacturing Decline and the Falling Marriage Market Value of Young Men," American Economic Review: Insights, American Economic Association, vol. 1(2), pages 161-178, September.
    11. Katharina Janke & Carol Propper & John Henderson, 2009. "Do current levels of air pollution kill? The impact of air pollution on population mortality in England," Health Economics, John Wiley & Sons, Ltd., vol. 18(9), pages 1031-1055, September.
    12. Anne Case & Angua Deaton, 2015. "Rising morbidity and mortality in midlife among white non-Hispanic Americans in the 21st century," Working Papers 15078.full.pdf, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    13. Coveney, Max & García-Gómez, Pilar & van Doorslaer, Eddy & Van Ourti, Tom, 2020. "Thank goodness for stickiness: Unravelling the evolution of income-related health inequalities before and after the Great Recession in Europe," Journal of Health Economics, Elsevier, vol. 70(C).
    14. James Banks & Xiaowei Xu, 2020. "The Mental Health Effects of the First Two Months of Lockdown during the COVID‐19 Pandemic in the UK," Fiscal Studies, John Wiley & Sons, vol. 41(3), pages 685-708, September.
    15. Monica Costa Dias & Robert Joyce & Fabien Postel‐Vinay & Xiaowei Xu, 2020. "The Challenges for Labour Market Policy during the COVID‐19 Pandemic," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 371-382, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. O’Connell, Martin & Smith, Kate & Stroud, Rebekah, 2022. "The dietary impact of the COVID-19 pandemic," Journal of Health Economics, Elsevier, vol. 84(C).
    2. Koel Roychowdhury & Radhika Bhanja & Sushmita Biswas, 2022. "Mapping the research landscape of Covid-19 from social sciences perspective: a bibliometric analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(8), pages 4547-4568, August.
    3. Tsz Wai Li & Tatia Mei-chun Lee & Robin Goodwin & Menachem Ben-Ezra & Li Liang & Huinan Liu & Wai Kai Hou, 2020. "Social Capital, Income Loss, and Psychobehavioral Responses amid COVID-19: A Population-Based Analysis," IJERPH, MDPI, vol. 17(23), pages 1-16, November.
    4. Aretz, Benjamin, 2022. "The short- and long-term effects of the Great Recession on late-life depression in Europe: The role of area deprivation," Social Science & Medicine, Elsevier, vol. 294(C).
    5. Paccagnella, Omar & Pongiglione, Benedetta, 2022. "Depression deterioration of older adults during the first wave of the COVID-19 outbreak in Europe," Social Science & Medicine, Elsevier, vol. 299(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jérôme Adda & Yarine Fawaz, 2020. "The Health Toll of Import Competition," The Economic Journal, Royal Economic Society, vol. 130(630), pages 1501-1540.
    2. Boslett, Andrew & Hill, Elaine, 2022. "Mortality during resource booms and busts," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    3. Fernández Guerrico, Sofía, 2021. "The effects of trade-induced worker displacement on health and mortality in Mexico," Journal of Health Economics, Elsevier, vol. 80(C).
    4. Anne Case & Angus Deaton, 2017. "Mortality and Morbidity in the 21st Century," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 397-476.
    5. Courtney C. Coile & Mark G. Duggan, 2019. "When Labor's Lost: Health, Family Life, Incarceration, and Education in a Time of Declining Economic Opportunity for Low-Skilled Men," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 191-210, Spring.
    6. Janet Currie & Hannes Schwandt, 2020. "The Opioid Epidemic Was Not Primarily Caused by Economic Distress But by Other Factors that Can be More Readily Addressed," Working Papers 2020-25, Princeton University. Economics Department..
    7. Janet Currie & Hannes Schwandt, 2021. "The Opioid Epidemic Was Not Caused by Economic Distress but by Factors That Could Be More Rapidly Addressed," The ANNALS of the American Academy of Political and Social Science, , vol. 695(1), pages 276-291, May.
    8. Colantone, Italo & Crinò, Rosario & Ogliari, Laura, 2019. "Globalization and mental distress," Journal of International Economics, Elsevier, vol. 119(C), pages 181-207.
    9. David M. Cutler & Wei Huang & Adriana Lleras-Muney, 2016. "Economic Conditions and Mortality: Evidence from 200 Years of Data," NBER Working Papers 22690, National Bureau of Economic Research, Inc.
    10. Ainhoa Aparicio, 2014. "Newborn Health and the Business Cycle," CINCH Working Paper Series 1402, Universitaet Duisburg-Essen, Competent in Competition and Health.
    11. Dow, Wiiliam H & Godoey, Anna & Lowenstein, Christopher A & Reich, Michael, 2019. "Can Economic Policies Reduce Deaths of Despair? Working Paper #104-19," Institute for Research on Labor and Employment, Working Paper Series qt14f015df, Institute of Industrial Relations, UC Berkeley.
    12. Clémentine Garrouste & Mathilde Godard, 2016. "The lasting health impact of leaving school in a bad economy : Britons in the 1970s recession," Post-Print hal-01408637, HAL.
    13. Sonia Bhalotra & Samantha Rawlings, 2013. "Gradients of the Intergenerational Transmission of Health in Developing Countries," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 660-672, May.
    14. Angelini, V. & Mierau, J.O., 2012. "Social and economic aspects of childhood health," Research Report 12002-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    15. Oscar Erixson, 2017. "Health responses to a wealth shock: evidence from a Swedish tax reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(4), pages 1281-1336, October.
    16. Dow, William H. & Godøy, Anna & Lowenstein, Christopher & Reich, Michael, 2020. "Can Labor Market Policies Reduce Deaths of Despair?," Journal of Health Economics, Elsevier, vol. 74(C).
    17. Hummels, David & Munch, Jakob R. & Xiang, Chong, 2016. "No Pain, No Gain: The Effects of Exports on Effort, Injury, and Illness," IZA Discussion Papers 10036, Institute of Labor Economics (IZA).
    18. Colantone, Italo & Ottaviano, Gianmarco & Stanig, Piero, 2021. "The backlash of globalization," LSE Research Online Documents on Economics 113860, London School of Economics and Political Science, LSE Library.
    19. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    20. Ibáñez, Ana María & Rozo, Sandra V. & Urbina, María J., 2021. "Forced Migration and the Spread of Infectious Diseases," Journal of Health Economics, Elsevier, vol. 79(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:fistud:v:41:y:2020:i:2:p:337-344. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://doi.org/10.1111/(ISSN)1475-5890 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1475-5890 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.