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Acute health shocks and labour market outcomes

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  • Jones, M.A.
  • Rice, N.
  • Zantomio, F.

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 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

  • Jones, M.A. & Rice, N. & Zantomio, F., 2016. "Acute health shocks and labour market outcomes," Health, Econometrics and Data Group (HEDG) Working Papers 16/04, HEDG, c/o Department of Economics, University of York.
  • Handle: RePEc:yor:hectdg:16/04
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    Cited by:

    1. Smith, P., 2019. "Can a Strong Economic Case Be Made for Investing in the NHS?," Monographs, Office of Health Economics, number 002090.
    2. Sylvia Dixon, 2015. "The Employment and Income Effects of Eight Chronic and Acute Health Conditions," Treasury Working Paper Series 15/15, New Zealand Treasury.
    3. codagnone, cristiano & Bogliacino, Francesco & Gómez, Camilo Ernesto & Folkvord, F. & Liva, Giovanni & Charris, Rafael Alberto & Montealegre, Felipe & Lupiáñez-Villanueva, Francisco & Veltri, Giuseppe, 2020. "Restarting “normal” life after Covid-19 and the lockdown: Evidence from Spain, the United Kingdom, and Italy," SocArXiv vd4cq, Center for Open Science.
    4. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    5. 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," Working Papers halshs-01626187, HAL.
    6. Nicole Black & Elaine De Gruyter & Dennis Petrie & Sarah Smith, 2020. "Altruism born of suffering? The impact of an adverse health shock on pro-social behaviour," Bristol Economics Discussion Papers 20/736, School of Economics, University of Bristol, UK.
    7. Michele Belloni & Antonella Bena & Elena Farina & Irene Simonetti & Francesca Zantomio, 2019. "Long-run effects of health shocks in a highly regulated labour market," Working Papers 2019: 32, Department of Economics, University of Venice "Ca' Foscari".
    8. Emmanuel Duguet & Christine Le Clainche, 2020. "The Socioeconomic and Gender Impacts of Health Events on Employment Transitions in France: A Panel Data Study," Journal of Human Capital, University of Chicago Press, vol. 14(3), pages 449-483.
    9. 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.
    10. Heather Brown, 2020. "Understanding the role of policy on inequalities in the intergenerational correlation in health and wages: Evidence from the UK from 1991–2017," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-16, June.
    11. 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.

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    More about this item

    Keywords

    health shocks; labour supply; panel data; matching methods;
    All these keywords.

    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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