The Effect of Accidents on Employment: Evidence from Chile

22 Pages Posted: 21 Jun 2018 Last revised: 13 Jul 2019

See all articles by Francisco Parro

Francisco Parro

Adolfo Ibanez University

Vincent Pohl

Mathematica Policy Research, Washington, DC

Multiple version iconThere are 2 versions of this paper

Date Written: July 11, 2019

Abstract

Exploiting variation in the timing of accidents, we estimate the causal effect of this type of health shock on formal employment among Chilean men. We use administrative data on monthly employment and hospital discharges over a period spanning almost a decade. We find a large and persistent negative effect of accidents on employment. On average, employment in the formal sector declines by about 16 percentage points in the three years following an accident. The initial effect amounts to about –12 percentage points and it steadily increases in absolute value to a level of –20 to –25 percentage points in the third post-accident year. We also find some suggestive evidence that education and health care quality are factors that help mitigate the employment consequences of health shocks.

Keywords: Accidents; Health Shocks; Employment; Education; Health Insurance

JEL Classification: I10; I13; I15; J22

Suggested Citation

Parro, Francisco and Pohl, Vincent, The Effect of Accidents on Employment: Evidence from Chile (July 11, 2019). Available at SSRN: https://ssrn.com/abstract=3188245 or http://dx.doi.org/10.2139/ssrn.3188245

Francisco Parro

Adolfo Ibanez University ( email )

Diagonal Las Torres 2640 Peñaleón
Presidente Errázuriz 3485 Las Condes
Santiago, 794-1169
Chile

Vincent Pohl (Contact Author)

Mathematica Policy Research, Washington, DC ( email )

1100 1st Street, NE, 12th Floor
Washington, DC 20002-4221
United States

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