Will Knowing Diabetes Affect Labor Income? Evidence from a Natural Experiment

15 Pages Posted: 15 Apr 2014 Last revised: 30 Apr 2014

See all articles by Xiaoou Liu

Xiaoou Liu

Renmin University of China

Chen Zhu

China Agricultural University - College of Economics and Management; China Center for Genoeconomic Studies (CCGS)

Date Written: April 12, 2014

Abstract

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

Suggested Citation

Liu, Xiaoou and Zhu, Chen, Will Knowing Diabetes Affect Labor Income? Evidence from a Natural Experiment (April 12, 2014). Economics Letters, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2424576

Xiaoou Liu

Renmin University of China ( email )

Room B906
Xianjin Building
Beijing, Beijing 100872
China

Chen Zhu (Contact Author)

China Agricultural University - College of Economics and Management ( email )

Beijing
China

China Center for Genoeconomic Studies (CCGS) ( email )

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