Do Work Conditions Affect Individual Health? - An Economic Valuation of Job Stressors and the Work-Life Balance

Abstract

We estimate the impact of qualitative job characteristics on self-rated general health and the prevalence of specific illnesses. Using panel data and controlling for individual- specific effects and pre-existing health, we find that the perceived risk of unemployment, but not unemployment per se, and an imbalanced work-life have major detrimental effects on health. We calculate compensating income variations ranging from about 10 to 50 percent for a negative work condition. Our results call for an intervention at the workplace to reduce the number of ill-days and prevent long-term health damages.

Keywords: health, work stress, job security, work-life balance, fixed effects

JEL Classification: I10, J28, J81