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Road injuries and long-run effects on income and employment

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  • Anne Moller Dano

    (Institute of Local Government Studies, Copenhagen V, Denmark)

Abstract

This paper investigates whether unexpected shocks in terms of road injuries 'cause' a permanent change in disposable income, earnings, employment, and public transfer income. We use 'propensity score matching' and apply a difference-in-difference matching method to estimate the counterfactual of what the disposable income, earnings, employment, and the amount of public transfer income would have been of a particular group of persons injured by road accidents if they had not in fact been injured. We find that road injuries have important consequences. Older injured persons and injured persons in the lower part of the income distribution have significantly lower disposable incomes than older and low-income non-injured persons. In both the short and the long run the employment rates for the injured men are significantly lower than for non-injured persons. No effects on the employment rate are found for women. Besides, earnings are reduced in the long run for men where significant effects are only found for older women. The analysis shows that both injured men and women are compensated in terms of a significant increase in public transfer incomes in both the short and the long run. Copyright © 2005 John Wiley & Sons, Ltd.

Suggested Citation

  • Anne Moller Dano, 2005. "Road injuries and long-run effects on income and employment," Health Economics, John Wiley & Sons, Ltd., vol. 14(9), pages 955-970.
  • Handle: RePEc:wly:hlthec:v:14:y:2005:i:9:p:955-970
    DOI: 10.1002/hec.1045
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    File URL: http://hdl.handle.net/10.1002/hec.1045
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    Cited by:

    1. García-Gómez, Pilar & Jones, Andrew M. & Rice, Nigel, 2010. "Health effects on labour market exits and entries," Labour Economics, Elsevier, vol. 17(1), pages 62-76, January.
    2. Lindeboom, Maarten & Llena-Nozal, Ana & van der Klaauw, Bas, 2006. "Disability and Work: The Role of Health Shocks and Childhood Circumstances," CEPR Discussion Papers 5685, C.E.P.R. Discussion Papers.
    3. Yevgeniy Goryakin & Lorenzo Rocco & Marc Suhrcke & Bayard Roberts & Martin McKee, 2014. "The effect of health on labour supply in nine former Soviet Union countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(1), pages 57-68, January.
    4. Emmanuel Duguet & Christine Le Clainche, 2014. "The Effect of Non-Work Related Health Events on Career Outcomes: An Evaluation in the French Labor Market," Revue d'économie politique, Dalloz, vol. 124(3), pages 437-465.
    5. Adrian Chadi & Laszlo Goerke, 2015. "Missing at Work – Sickness-related Absence and Subsequent Job Mobility," IAAEU Discussion Papers 201504, Institute of Labour Law and Industrial Relations in the European Union (IAAEU).
    6. Jones, M.A. & Rice, N. & Zantomio, F., 2016. "Acute health shocks and labour market outcomes," Health, Econometrics and Data Group (HEDG) Working Papers 16/04, HEDG, c/o Department of Economics, University of York.
    7. Titus Galama & Hans van Kippersluis, 2013. "Health Inequalities through the Lens of Health Capital Theory Issues, Solutions, and Future Directions," Working Papers WR-1011, RAND Corporation.
    8. Antonio García-ferrer & Aránzazu De Juan & Pilar Poncela, 2007. "The relationship between road traffic accidents and real economic activity in Spain: common cycles and health issues," Health Economics, John Wiley & Sons, Ltd., vol. 16(6), pages 603-626.
    9. Pilar García Gómez, 2008. "Institutions, health shocks and labour outcomes across Europe," Working Papers 2008-01, FEDEA.
    10. Trevisan, Elisabetta & Zantomio, Francesca, 2016. "The impact of acute health shocks on the labour supply of older workers: Evidence from sixteen European countries," Labour Economics, Elsevier, vol. 43(C), pages 171-185.
    11. Emmanuel Duguet & Christine Le Clainche, 2014. "Chronic Illnesses and Injuries: An Evaluation of their Impact on Occupation and Revenues / Maladies chroniques et accidents : une évaluation de leur impact sur le parcours professionnel et les revenus," Working Papers halshs-00966970, HAL.
    12. Thomas Barnay & Emmanuel Duguet & Christine Le Clainche & Mathieu Narcy & Yann Videau, 2014. "L’impact du handicap sur les trajectoires d’emploi : une comparaison public-privé," Working Papers hal-01076896, HAL.
    13. García-Gómez, Pilar, 2011. "Institutions, health shocks and labour market outcomes across Europe," Journal of Health Economics, Elsevier, vol. 30(1), pages 200-213, January.
    14. Pilar García-Gómez & Hans-Martin Gaudecker & Maarten Lindeboom, 2011. "Health, disability and work: patterns for the working age population," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(2), pages 146-165, April.
    15. González Álvarez, Mª Luz & Gamero-Burón, Carlos, 2013. "Coste de las visitas médicas y urgencias asociadas al estrés laboral en España/Health Care Costs Due to Job Stress in Spain," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 31, pages 417-444, Septiembr.
    16. David M. Zimmer, 2015. "Employment Effects Of Health Shocks: The Role Of Fringe Benefits," Bulletin of Economic Research, Wiley Blackwell, vol. 67(4), pages 346-358, October.
    17. Jessica Aschemann-Witzel & Tino Bech-Larsen & Sara Capacci, 2016. "Do Target Groups Appreciate Being Targeted? An Exploration of Healthy Eating Policy Acceptance," Journal of Consumer Policy, Springer, vol. 39(3), pages 285-306, September.
    18. Halla, Martin & Zweimüller, Martina, 2013. "The effect of health on earnings: Quasi-experimental evidence from commuting accidents," Labour Economics, Elsevier, vol. 24(C), pages 23-38.
    19. Decker, Simon & Schmitz, Hendrik, 2016. "Health shocks and risk aversion," Journal of Health Economics, Elsevier, vol. 50(C), pages 156-170.
    20. Pilar García-Gómez & Hans van Kippersluis & Owen O’Donnell & Eddy van Doorslaer, 2013. "Long-Term and Spillover Effects of Health Shocks on Employment and Income," Journal of Human Resources, University of Wisconsin Press, vol. 48(4), pages 873-909.
    21. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.

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