Arbeitspapier

The Effects of Unemployment on Health, Hospitalizations, and Mortality - Evidence from Administrative Data

Linking health to the employment history of the whole Slovenia's workforce, this paper employs three innovative features. First, it utilizes a novel "double proof" approach of addressing the reverse causality that tracks only healthy individuals, making sure that any unemployment spell that individual may undergo precedes the occurrence of a disease, and relies on mass-layoffs to provide an additional layer of exogeneity to unemployment. Second, it is one of the first papers using data on drug prescriptions to infer information about the health status of individuals and link it labor market outcomes. And third, it treats the health effects of unemployment as part of a dose-response relationship, with the share of time spent in unemployment (as opposed to other labor market states) reflecting the "unemployment dose". The paper finds that, in comparison to employed persons with permanent contracts, persons experiencing unemployment face increased hazard of all three studied groups of diseases - cardiovascular diseases, diabetes, and mental disorders - as well as of hospitalizations caused by these diseases, with the effects stretching over a 15-year horizon. Moreover, the results also show that unemployment significantly increases the probability of death due to cardiovascular diseases and mental disorders, as well as death of any cause.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 14318

Classification
Wirtschaft
Unemployment: Models, Duration, Incidence, and Job Search
Health Behavior
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Subject
unemployment
health
hospitalization
mortality
cardiovascular diseases
diabetes
mental disorders
prescriptions
duration analysis

Event
Geistige Schöpfung
(who)
Vodopivec, Matija
Laporsek, Suzana
Stare, Janez
Vodopivec, Milan
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2021

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Vodopivec, Matija
  • Laporsek, Suzana
  • Stare, Janez
  • Vodopivec, Milan
  • Institute of Labor Economics (IZA)

Time of origin

  • 2021

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