Acute health shocks and labour market outcomes

M.A. Jones, Nigel Rice and Francesca Zantomio

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

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.

Keywords: health shocks; labour supply; panel data; matching methods (search for similar items in EconPapers)
JEL-codes: C14 I10 J22 (search for similar items in EconPapers)
Date: 2016-03
New Economics Papers: this item is included in nep-hea
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Citations: View citations in EconPapers (16)

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Working Paper: Acute health shocks and labour market outcomes (2016)
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