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The Miracle Drugs: Hormone Replacement Therapy and Labor Market Behavior of Middle-Aged Women

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  • Daysal, N. Meltem

    (University of Copenhagen)

  • Orsini, Chiara

    (University of Sheffield)

Abstract

In an aging society, determining which factors contribute to the employment of older individuals is increasingly important. We examine the impact of medical innovations on the employment of middle-aged women focusing on the specific case of Hormone Replacement Therapy (HRT), a common treatment for the alleviation of negative menopausal symptoms. HRT medications were among the most popular prescriptions in the United States until 2002 when the Women's Health Initiative Study – the largest randomized control trial on women ever undertaken – documented the health risks associated with their long term use. We exploit the release of these findings within a Fixed Effect Instrumental Variable framework to address the endogeneity in HRT use. Our results indicate substantial benefits of HRT use to the short-term employment of middle-aged women.

Suggested Citation

  • Daysal, N. Meltem & Orsini, Chiara, 2014. "The Miracle Drugs: Hormone Replacement Therapy and Labor Market Behavior of Middle-Aged Women," IZA Discussion Papers 7993, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7993
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    Cited by:

    1. Meltem Daysal N. & Orsini Chiara, 2015. "Spillover Effects of Drug Safety Warnings on Preventive Health Care Use," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(1), pages 179-208, January.
    2. Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    3. Meltem Daysal, N. & Orsini, C., 2012. "Spillover Effects of Drug Safety Warnings on Health Behavior," Discussion Paper 2012-025, Tilburg University, Center for Economic Research.
    4. Bütikofer, Aline & Cronin, Christopher J. & Skira, Meghan M., 2020. "Employment effects of healthcare policy: Evidence from the 2007 FDA black box warning on antidepressants," Journal of Health Economics, Elsevier, vol. 73(C).

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    More about this item

    Keywords

    employment; pharmaceutical treatments; Hormone Replacement Therapy;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • H8 - Public Economics - - Miscellaneous Issues
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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