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When the Going Gets Tough, the Tough Get Going? Health and Self-employment in Europe

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Abstract

We provide a comprehensive picture of the change in the health status for the self-employed aged 50 and upwards in Europe. We find that self-employed workers are in better physical health than employees at younger ages, due potentially to a selection effect. We also find a negative effect of self-employment status on objective health, leading to worse physical conditions at older ages, despite a catching-up of healthcare consumption after retirement. The examination of the evolution of the self-employed healthcare consumption enables us to distinguish two components: an intense health restoration effect and a regular one, corresponding to two distinct periods in their life. We interpreted the former effect as the increased probability of the self-employed to be hospitalized during their careers, meaning that the self-employed seek care later or for serious reasons only. The latter effect or the regular restoration effect meaning a greater number of medical visits for the self-employed after retirement which is potentially due to a reduction in the opportunity cost of the use of healthcare resources.

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  • Clémentine Garrouste & Alain Paraponaris & Nicolas Sirven, 2025. "When the Going Gets Tough, the Tough Get Going? Health and Self-employment in Europe," AMSE Working Papers 2529, Aix-Marseille School of Economics, France.
    • Handle: RePEc:aim:wpaimx:2529
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    File URL: https://www.amse-aixmarseille.fr/sites/default/files/working_papers/wp_2025_nr_29.pdf
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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