Abstract
We investigate the labour supply response to an acute health shock for individuals of all working ages, in the post crash era, combining coarsened exact matching and entropy balancing to preprocess data prior to undertaking parametric regression. Identification exploits uncertainty in the timing of an acute health shock, defined by the incidence of cancer, stroke, or heart attack, based on data from Understanding Society. The main finding implies a substantial increase in the baseline probability of labour market exit along with reduced hours and earnings. Younger workers display a stronger labour market attachment than older counterparts, conditional on a health shock. Impacts are stronger for women, older workers, and those who experience more severe limitations and impairments. This is shown to be robust to a broad range of approaches to estimation. Sensitivity tests based on pre-treatment outcomes and using future health shocks as a placebo treatment support our identification strategy.
| Original language | English |
|---|---|
| Article number | 100811 |
| Number of pages | 17 |
| Journal | Economics and Human Biology |
| DOIs | |
| Publication status | Accepted/In press - 2019 |
Keywords
- Acute health shocks
- Labour supply
- Matching methods
- Panel data
Cite this
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Acute health shocks and labour market outcomes : evidence from the post crash era. / Jones, Andrew M.; Rice, Nigel; Zantomio, Francesca.
In: Economics and Human Biology, 2019.Research output: Contribution to journal › Article › Research › peer-review
TY - JOUR
T1 - Acute health shocks and labour market outcomes
T2 - evidence from the post crash era
AU - Jones, Andrew M.
AU - Rice, Nigel
AU - Zantomio, Francesca
PY - 2019
Y1 - 2019
N2 - We investigate the labour supply response to an acute health shock for individuals of all working ages, in the post crash era, combining coarsened exact matching and entropy balancing to preprocess data prior to undertaking parametric regression. Identification exploits uncertainty in the timing of an acute health shock, defined by the incidence of cancer, stroke, or heart attack, based on data from Understanding Society. The main finding implies a substantial increase in the baseline probability of labour market exit along with reduced hours and earnings. Younger workers display a stronger labour market attachment than older counterparts, conditional on a health shock. Impacts are stronger for women, older workers, and those who experience more severe limitations and impairments. This is shown to be robust to a broad range of approaches to estimation. Sensitivity tests based on pre-treatment outcomes and using future health shocks as a placebo treatment support our identification strategy.
AB - We investigate the labour supply response to an acute health shock for individuals of all working ages, in the post crash era, combining coarsened exact matching and entropy balancing to preprocess data prior to undertaking parametric regression. Identification exploits uncertainty in the timing of an acute health shock, defined by the incidence of cancer, stroke, or heart attack, based on data from Understanding Society. The main finding implies a substantial increase in the baseline probability of labour market exit along with reduced hours and earnings. Younger workers display a stronger labour market attachment than older counterparts, conditional on a health shock. Impacts are stronger for women, older workers, and those who experience more severe limitations and impairments. This is shown to be robust to a broad range of approaches to estimation. Sensitivity tests based on pre-treatment outcomes and using future health shocks as a placebo treatment support our identification strategy.
KW - Acute health shocks
KW - Labour supply
KW - Matching methods
KW - Panel data
UR - http://www.scopus.com/inward/record.url?scp=85072075338&partnerID=8YFLogxK
U2 - 10.1016/j.ehb.2019.100811
DO - 10.1016/j.ehb.2019.100811
M3 - Article
JO - Economics and Human Biology
JF - Economics and Human Biology
SN - 1570-677X
M1 - 100811
ER -