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Health shocks, employment and income in the Spanish labour markets

  • Pilar García Gómez
  • Angel López Nicolás

This paper investigates the relationship between health shocks and labour outcomes in the Spanish population using the European Community Household Panel. In order to control for the nonexperimental nature of the data we use matching techniques. Our results suggest that there is a significant effect running from health to the probability of employment and to labour income. Moreover, while we cannot investigate the influence of childhood events and other phenomena that trigger long run causal pathways from socio-economic status to health, we are able to find a significant reduction in the probability of reporting good health in individuals who transit out of employment in comparison with individuals who are otherwise identical in terms of reported health status at the time of the transition.

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File URL: http://www.york.ac.uk/media/economics/documents/herc/wp/05_14.pdf
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Paper provided by HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 05/14.

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Date of creation: Nov 2005
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Handle: RePEc:yor:hectdg:05/14
Contact details of provider: Postal: HEDG/HERC, Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
Phone: (0)1904 323776
Fax: (0)1904 323759
Web page: http://www.york.ac.uk/economics/postgrad/herc/hedg/
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  1. Anne Case & Darren Lubotsky & Christina Paxson, 2001. "Economic Status and Health in Childhood: The Origins of the Gradient," NBER Working Papers 8344, National Bureau of Economic Research, Inc.
  2. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
  3. Lechner, Michael & Vazquez-Alvarez, Rosalia, 2004. "The Effect of Disability on Labour Market Outcomes in Germany: Evidence from Matching," CEPR Discussion Papers 4223, C.E.P.R. Discussion Papers.
  4. Sergi Jiménez-Martín & José M. Labeaga & Cristina Vilaplana Prieto, 2005. "A sequential model for older workers’ labor transitions after a health shock," Economics Working Papers 898, Department of Economics and Business, Universitat Pompeu Fabra.
  5. Richard Disney & Carl Emmerson & Matthew Wakefield, 2003. "Ill health and retirement in Britain: a panel data based analysis," IFS Working Papers W03/02, Institute for Fiscal Studies.
  6. Blundell, Richard William & Costa Dias, Monica & Meghir, Costas & Van Reenen, John, 2003. "Evaluating the Employment Impact of a Mandatory Job Search Programme," CEPR Discussion Papers 3786, C.E.P.R. Discussion Papers.
  7. (*), Nigel Rice & Paul Contoyannis, 2001. "The impact of health on wages: Evidence from the British Household Panel Survey," Empirical Economics, Springer, vol. 26(4), pages 599-622.
  8. Pilar García Gómez & Ángel López, 2004. "Socio-economic inequalities in health in Catalonia," Economics Working Papers 758, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2005.
  9. Pilar García Gómez & Ángel López, 2004. "Regional differences in socio-economic health inequalities in Spain," Working Papers, Research Center on Health and Economics 757, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2004.
  10. Markus Frölich & Almas Heshmati & Michael Lechner, 2004. "A microeconometric evaluation of rehabilitation of long-term sickness in Sweden," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 375-396.
  11. Richard Blundell & Monica Costa Dias, 2002. "Alternative approaches to evaluation in empirical microeconomics," CeMMAP working papers CWP10/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  12. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
  13. Eddy van Doorslaer & Xander Koolman, 2004. "Explaining the differences in income-related health inequalities across European countries," Health Economics, John Wiley & Sons, Ltd., vol. 13(7), pages 609-628.
  14. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
  15. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc.
  16. James P. Smith, 2005. "Unraveling the SES-Health Connection," Labor and Demography 0505018, EconWPA.
  17. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
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