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The Labor Market Impacts of GLP-1s

Author

Listed:
  • Daysal, N. Meltem

    (University of Copenhagen)

  • Fredrickson, Camille

    (University of Chicago)

  • Kristiansen, Ida

    (University of Copenhagen)

  • Trandafir, Mircea

    (Rockwool Foundation Research Unit)

  • Zhang, Jonathan

    (Duke University)

Abstract

We estimate the causal impacts of GLP-1 treatment on labor market outcomes using linked Danish administrative data and a matched stacked difference-in-differences design. We compare patients who initiate GLP-1 treatment during the first two years of Semaglutide availability to observably similar patients who initiate four years later. We find that GLP-1 treatment reduces long-term sickness leave by 17.3%. We estimate total fiscal benefits of GLP-1 initiation of approximately 1.3–1.5% of annual labor income per employed individual. We do not detect statistically significant or economically meaningful impacts on income, labor force participation, or employment over four years.

Suggested Citation

  • Daysal, N. Meltem & Fredrickson, Camille & Kristiansen, Ida & Trandafir, Mircea & Zhang, Jonathan, 2026. "The Labor Market Impacts of GLP-1s," IZA Discussion Papers 18787, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18787
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    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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