Will Knowing Diabetes Affect Labor Income? Evidence from a Natural Experiment
15 Pages Posted: 15 Apr 2014 Last revised: 30 Apr 2014
Date Written: April 12, 2014
This paper analyzes the impact of diabetes awareness on labor income using data from a natural experiment in China. We find that diabetes in general leads to a 16.3% decrease in annual income after respondents being diagnosed, and the adverse impact is heterogeneous across different populations. Males and individuals with lower income are affected more, suggesting that social support may be necessary. The estimated income losses are primarily due to the psychosocial consequences of diabetes, such as reduced productivity, diabetes-related distress, or discrimination in the workplace.
Keywords: Diabetes, Income, Hemoglobin A1c (HbA1c), Natural Experiment, China
JEL Classification: I10, I18, J21
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