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Institutions, health shocks and labour outcomes across Europe

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  • Pilar García Gómez

Abstract

This paper investigates the relationship between health shocks and labour outcomes in 9 European countries using the European Community Household Panel. In order to control for the non-experimental nature of the data I use matching and matching combined with difference-in-differences techniques. My results suggest that there is a significant effect running from health to the probability of employment and to income: individuals who suffer a health shock are significantly more likely to leave employment, and in several countries this is associated to a significant reduction in some types of income. There are differences in the estimates across countries, with the largest employment effects being found in the Netherlands, Denmark and Ireland, and the smallest in France, Italy and Greece. The differences in Social Security arrangements help to explain the differences in the estimates for the effects of the health shocks.

Suggested Citation

  • Pilar García Gómez, 2008. "Institutions, health shocks and labour outcomes across Europe," Working Papers 2008-01, FEDEA.
  • Handle: RePEc:fda:fdaddt:2008-01
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    File URL: http://documentos.fedea.net/pubs/dt/2008/dt-2008-01.pdf
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    References listed on IDEAS

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    Cited by:

    1. 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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