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Harsh times: Do stressors lead to labor market losses?

Author

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  • Petri Böckerman

    (Palkansaajien tutkimuslaitos)

  • Terhi Maczulskij

Abstract

This paper examines the effects of past stressful life events on subsequent labor market success using data on twins matched to comprehen-sive register-based, individual-level information on income and emplo-yment status. The long-term labor market outcomes are measured during 20-year follow-up. We use the within-twin method to account for unob-servable family and genetic confounders. The twin design reveals three important findings. First, stressors lead to worse labor market outcomes. Second, men are more affected by financial and job-related stressors, whi-le women are more affected by family stressors. Third, the negative ef-fects that stressors have on labor market outcomes diminish as time passes.

Suggested Citation

  • Petri Böckerman & Terhi Maczulskij, 2017. "Harsh times: Do stressors lead to labor market losses?," Working Papers 313, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    • Handle: RePEc:pst:wpaper:313
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    Cited by:

    1. Belloni, Michele & Simonetti, Irene & Zantomio, Francesca, 2019. "Long-run effects of health shocks in a highly regulated labour market," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201922, University of Turin.
    2. Simonetti, Irene & Belloni, Michele & Farina, Elena & Zantomio, Francesca, 2022. "Labour market institutions and long term adjustments to health shocks: Evidence from Italian administrative records," Labour Economics, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    Stressors; Stressful life events; Employment; Earnings; Co-twin control; Twins;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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