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Do Medical Treatments Work for Work? Evidence from Breast Cancer Patients

Author

Listed:
  • N. Meltem Daysal

    (University of Copenhagen, CEBI, IZA, CESIfo)

  • Mikkel Hasse Pedersen

    (Incentive DK)

  • William N. Evans

    (University of Notre Dame, NBER)

  • Mircea Trandafir

    (Rockwool Foundation Research Unit, IZA)

Abstract

We investigate the effects of radiation therapy on the mortality and economic outcomes of breast cancer patients. We implement a 2SLS strategy within a difference-in-difference framework exploiting variation in treatment stemming from a medical guideline change in Denmark. Using administrative data, we reproduce results from an RCT showing the lifesaving benefits of radiotherapy. We then show therapy also has economic returns: ten years after diagnosis, treatment increases employment by 37% and earnings by 45%. Mortality and economic results are driven by results for more educated women, indicating that equalizing access to treatment may not be sufficient to reduce health inequalities.

Suggested Citation

  • N. Meltem Daysal & Mikkel Hasse Pedersen & William N. Evans & Mircea Trandafir, 2022. "Do Medical Treatments Work for Work? Evidence from Breast Cancer Patients," CEBI working paper series 22-23, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    • Handle: RePEc:kud:kucebi:2223
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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