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Health shocks, employment and income in the Spanish labour market

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  • Pilar García Gómez
  • Angel López Nicolás

Abstract

This paper investigates the relationship between health shocks and labour outcomes in the Spanish population using the European Community Household Panel. In order to control for the non‐experimental nature of the data we use difference in difference and matching techniques. Our results suggest that there is a significant effect running from health to the probability of employment and to labour income. Moreover, while we cannot investigate the influence of childhood events and other phenomena that trigger long run causal pathways from socio‐economic status to health, we are able to find a significant reduction in the probability of reporting good health in individuals who transit out of employment in comparison with individuals who are otherwise identical in terms of reported health status at the time of the transition. Copyright © 2006 John Wiley & Sons, Ltd.

Suggested Citation

  • Pilar García Gómez & Angel López Nicolás, 2006. "Health shocks, employment and income in the Spanish labour market," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 997-1009, September.
    • Handle: RePEc:wly:hlthec:v:15:y:2006:i:9:p:997-1009
    DOI: 10.1002/hec.1151
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    Cited by:

    1. Nolan, Anne, 2008. "Evaluating the impact of eligibility for free care on the use of general practitioner (GP) services: A difference-in-difference matching approach," Social Science & Medicine, Elsevier, vol. 67(7), pages 1164-1172, October.
    2. Elena Cottini & Claudio Lucifora, 2013. "Mental Health and Working Conditions in Europe," ILR Review, Cornell University, ILR School, vol. 66(4), pages 958-988, July.
    3. Andrew M. Jones & Nigel Rice & Francesca Zantomio, 2016. "Acute health shocks and labour market outcomes," Working Papers 2016:09, Department of Economics, University of Venice "Ca' Foscari".
    4. Cottini, Elena & Lucifora, Claudio, 2010. "Mental Health and Working Conditions in European Countries," IZA Discussion Papers 4717, Institute of Labor Economics (IZA).
    5. 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.
    6. Yevgeniy Goryakin & Marc Suhrcke, 2017. "The impact of poor adult health on labor supply in the Russian Federation," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(3), pages 361-372, April.
    7. Stefanie Schurer, 2008. "Discrete Heterogeneity in the Impact of Health Shocks on Labour Market Outcomes," Melbourne Institute Working Paper Series wp2008n19, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    8. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    9. Emmanuel Duguet & Christine Le Clainche, 2020. "The Socioeconomic and Gender Impacts of Health Events on Employment Transitions in France: A Panel Data Study," Journal of Human Capital, University of Chicago Press, vol. 14(3), pages 449-483.
    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. Maria Cervini-Pla & Judit Vall Castelló, 2018. "The earnings and employment losses before entering the disability system," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(8), pages 1111-1128, November.
    12. 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.
    13. David Casado-Marín & Pilar García-Gómez & Ángel López-Nicolás, 2008. "Labour and income effects of caregiving across Europe: an evaluation using matching techniques," Health, Econometrics and Data Group (HEDG) Working Papers 08/23, HEDG, c/o Department of Economics, University of York.
    14. Nolan, Anne, 2006. "Evaluating the Impact of Eligibility for Free Care on the Use of GP Services in Ireland: A Difference-in-Difference Matching Approach," Papers HRBWP25, Economic and Social Research Institute (ESRI).
    15. Candon, David, 2018. "The effect of cancer on the labor supply of employed men over the age of 65," Economics & Human Biology, Elsevier, vol. 31(C), pages 184-199.
    16. Carrieri, V.; & Jones, A.M.; & Principe, F.;, 2018. "Health shocks and labour market outcomes: evidence from professional football," Health, Econometrics and Data Group (HEDG) Working Papers 18/01, HEDG, c/o Department of Economics, University of York.
    17. Koning, Pierre & Muller, Paul & Prudon, Roger, 2022. "Do disability benefits hinder work resumption after recovery?," Journal of Health Economics, Elsevier, vol. 82(C).
    18. 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 Economia Aplicada, Estudios de Economia Aplicada, vol. 31, pages 417-444, Septiembr.
    19. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    20. Vincenzo Carrieri & Andrew M. Jones & Francesco Principe, 2020. "Productivity Shocks and Labour Market Outcomes for Top Earners: Evidence from Italian Serie A," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(3), pages 549-576, June.
    21. 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.

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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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