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Major health shocks and decisions about labour force participation amongst Mexican couples

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Abstract

The purpose of this study is to analyze the labour force participation response to major health shocks, such as new cancer diagnoses, heart attacks and strokes, in middle- aged to elderly Mexican couples. The data originate from the Mexican Health and Aging Study (MHAS), and provides information on how couples coordinate their labour market activities in response to major health shocks. I find that female labour force participation is negatively affected by a major health shock to her spouse. In contrast, there is not a significant effect of a female negative health shock on her spouse’s labour force participation. I find the same result when the labour force participation is split between part-time work and full-time work.

Suggested Citation

  • Vega, Alejandro, 2019. "Major health shocks and decisions about labour force participation amongst Mexican couples," Umeå Economic Studies 967, Umeå University, Department of Economics.
    • Handle: RePEc:hhs:umnees:0967
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    More about this item

    Keywords

    health shock; labour force participation; household model; labour supply; elderly couples;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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