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Acute health shocks and labour market outcomes

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  • Andrew M. Jones

    () (Department of Economics, University Of York)

  • Nigel Rice

    () (Department of Economics, University Of York)

  • Francesca Zantomio

    (Department of Economics, Ca' Foscari University Of Venice)

Abstract

We investigate the labour supply response to acute health shocks experienced in the post-crash labour market by individuals of working age, using data from Understanding Society. Identification that exploits uncertainty in the timing of an acute health shock, defined by the incidence of cancer, stroke, or heart attack. Results, obtained through a combination of coarsened exact and propensity score matching, show acute health shocks significantly reduce participation, with younger workers displaying stronger labour market attachment. The impact on older, more educated, women suggests an important role for preferences, financial constraints, and intra-household division of labour determining labour supply decisions.

Suggested Citation

  • Andrew M. Jones & Nigel Rice & Francesca Zantomio, 2016. "Acute health shocks and labour market outcomes," Working Papers 2016:09, Department of Economics, University of Venice "Ca' Foscari".
  • Handle: RePEc:ven:wpaper:2016:09
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    References listed on IDEAS

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    Cited by:

    1. Antoine Marsaudon & Lise Rochaix, 2017. "Impact of acute health shocks on cigarette consumption
      [Impact d'un choc de santé sur la consommation de cigarette]
      ," PSE Working Papers halshs-01626024, HAL.
    2. Antoine Marsaudon & Lise Rochaix, 2010. "Impact of acute health shocks on cigarette consumption: A combined DiD-matching strategy to address endogeneity issues in the French Gazel panel data," PSE Working Papers halshs-01626187, HAL.
    3. Sylvia Dixon, 2015. "The Employment and Income Effects of Eight Chronic and Acute Health Conditions," Treasury Working Paper Series 15/15, New Zealand Treasury.
    4. Harris, M.N. & Zhao, X. & Zucchelli, E., 2016. "The dynamics of health and labour market transitions at older ages: evidence from a multi-state model," Health, Econometrics and Data Group (HEDG) Working Papers 16/30, HEDG, c/o Department of Economics, University of York.

    More about this item

    Keywords

    health shocks; labour supply; panel data; matching methods;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I10 - Health, Education, and Welfare - - Health - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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