The Long-Term Impact of an Early Career Recession on Health and Health-Related Behaviors

63 Pages Posted: 21 Apr 2015 Last revised: 18 Jun 2015

See all articles by Naijia Guo

Naijia Guo

The Chinese University of Hong Kong (CUHK)

Rong Hai

University of Miami - School of Business Administration - Department of Economics

Date Written: June 18, 2015

Abstract

Using National Longitudinal Survey of Youth 1997, we estimate the long-term impact of an early career recession on various health outcomes and health-related behaviors. The early career recession is measured by the state-specific unemployment rate in the year of labor market entry. Using an instrumental variable approach, we address the potential selection issues on the timing of labor market entry. We find that first, an early career recession has an adverse impact on health status, depression, smoking, heavy drinking, illicit drug use, exercise, and daily fruit intake; and second, these adverse effects are especially pronounced among lower educated individuals.

Keywords: Health, Health Behavior, Unemployment Rate, Business Cycle

JEL Classification: I01, J06

Suggested Citation

Guo, Naijia and Hai, Rong, The Long-Term Impact of an Early Career Recession on Health and Health-Related Behaviors (June 18, 2015). Becker Friedman Institute for Research in Economics Working Paper No. 2596784. Available at SSRN: https://ssrn.com/abstract=2596784 or http://dx.doi.org/10.2139/ssrn.2596784

Naijia Guo

The Chinese University of Hong Kong (CUHK) ( email )

Shatin, N.T.
Hong Kong
Hong Kong

Rong Hai (Contact Author)

University of Miami - School of Business Administration - Department of Economics ( email )

P.O. Box 248126
Coral Gables, FL 33124-6550
United States

HOME PAGE: http://https://sites.google.com/site/ronghaiecon/

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