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Health Shocks, Human Capital, and Labor Market Outcomes

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  • Parro, Francisco
  • Pohl, R. Vincent

Abstract

Health, human capital, and labor market outcomes are linked through complex connections that are not fully understood. We explore these links by estimating a flexible yet tractable dynamic model of human capital accumulation in the presence of health shocks using administrative data from Chile. We find that (i) human capital mitigates the negative labor market effects of health events, (ii) these alleviating effects operate through channels involving occupational choice, the frequency of exposure to health events, and access to health care, and (iii) the effect of health shocks on labor market outcomes is heterogeneous across industries and types of diagnoses.

Suggested Citation

  • Parro, Francisco & Pohl, R. Vincent, 2018. "Health Shocks, Human Capital, and Labor Market Outcomes," MPRA Paper 87238, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:87238
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    References listed on IDEAS

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    Cited by:

    1. Svetlana Pashchenko & Ponpoje (Poe) Porapakkarm & Mariacristina De Nardi, 2017. "The Lifetime Costs of Bad Health," 2017 Meeting Papers 533, Society for Economic Dynamics.
    2. Mommaerts, Corina & Raza, Syed Hassan & Zheng, Yu, 2019. "The Economic Consequences of Hospitalizations for Older Workers across Countries," CEPR Discussion Papers 13753, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    health shocks; hospitalizations; labor market outcomes; earnings; human capital; education;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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