Acute Health Shocks and Labour Market Outcomes

Research output: Working paper

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Publication details

DatePublished - 15 Mar 2016
PublisherUniversity Ca' Foscari of Venice, Dept. of Economics
Place of PublicationVenice
Number of pages44
VolumeWorking Papers, Department of Economics, Ca` Foscari University of Venice, No 09/WP/2016
Original languageEnglish

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 that 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.

    Research areas

  • health shocks, labour supply, panel data, matching methods

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