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GLP-1 Treatment and Work Capacity

Author

Listed:
  • Maurizia Di Buono
  • Sergio Galletta

Abstract

Using linked Finnish administrative records and a staggered difference-in-differences design, we estimate how starting semaglutide (Ozempic) affects work capacity, measured by medically certified sickness absence. The first purchase is followed by persistent use and improved glycemic control, indicating that recorded purchases correspond to sustained and clinically active treatment. The reduction in sickness absence is near zero during months 0–5, becomes progressively larger thereafter, and is largest during months 12–18. Averaged over event months 0–18, sickness allowance receipt falls by 16.9 percent and compensated days by 14.3 percent relative to pre-treatment means. The decline in full-day sickness absence is not offset by greater reliance on unemployment or partial sickness benefits. The results show that semaglutide improves work capacity and can generate economic benefits beyond its direct effects on metabolic health.

Suggested Citation

  • Maurizia Di Buono & Sergio Galletta, 2026. "GLP-1 Treatment and Work Capacity," Working Papers in Public Economics 284, Department of Economics and Law, Sapienza University of Rome.
  • Handle: RePEc:sap:wpaper:wp284
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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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