Acute Health Shocks and Labour Market Outcomes

44 Pages Posted: 21 Mar 2016

See all articles by Andrew M. Jones

Andrew M. Jones

University of York - Department of Economics and Related Studies; HEB University of Bergen

Nigel Rice

University of York - Derwent College

Francesca Zantomio

Ca Foscari University of Venice

Date Written: March 15, 2016

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.

Keywords: health shocks, labour supply, panel data, matching methods

JEL Classification: C14, I10, J22

Suggested Citation

Jones, Andrew M. and Rice, Nigel and Zantomio, Francesca, Acute Health Shocks and Labour Market Outcomes (March 15, 2016). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 9. Available at SSRN: https://ssrn.com/abstract=2752356 or http://dx.doi.org/10.2139/ssrn.2752356

Andrew M. Jones

University of York - Department of Economics and Related Studies ( email )

Heslington
York, YO1 5DD
United Kingdom
+44-1904-43 3766 (Phone)

HEB University of Bergen ( email )

LOS-senteret
Rosenbergsgt. 39
5015 Bergen
Norway

Nigel Rice

University of York - Derwent College ( email )

Heslington
Centre for Health Research
York, YO10 5DD
United Kingdom

Francesca Zantomio (Contact Author)

Ca Foscari University of Venice ( email )

Dorsoduro 3246
Venice, Veneto 30123
Italy

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