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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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    References listed on IDEAS

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    1. Johannes F. Schmieder & Till von Wachter & Jörg Heining, 2023. "The Costs of Job Displacement over the Business Cycle and Its Sources: Evidence from Germany," American Economic Review, American Economic Association, vol. 113(5), pages 1208-1254, May.
    2. Damon Jones & David Molitor & Julian Reif, 2019. "What do Workplace Wellness Programs do? Evidence from the Illinois Workplace Wellness Study," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 1747-1791.
    3. Antoine Bertheau & Edoardo Maria Acabbi & Cristina Barceló & Andreas Gulyas & Stefano Lombardi & Raffaele Saggio, 2023. "The Unequal Consequences of Job Loss across Countries," American Economic Review: Insights, American Economic Association, vol. 5(3), pages 393-408, September.
    4. Rebecca Diamond, 2026. "GLP-1–Induced Weight Loss and the Female Obesity Penalty," NBER Working Papers 35387, National Bureau of Economic Research, Inc.
    5. Kosali Simon & Coady Wing & Sih-Ting Cai & Daniel Sacks, 2025. "Do GLP-1 medications pay for themselves?," Economics Virtual Symposium 2025 06, Stata Users Group.
    6. Melvin Stephens Jr. & Desmond Toohey, 2022. "The Impact of Health on Labor Market Outcomes: Evidence from a Large-Scale Health Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 367-399, July.
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    Keywords

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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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