The Economic Consequences of Hospitalizations for Older Workers Across Countries

58 Pages Posted: 30 May 2019

See all articles by Corina Mommaerts

Corina Mommaerts

University of Wisconsin - Madison - Department of Economics

Syed Hassan Raza

The Chinese University of Hong Kong (CUHK)

Yu Zheng

Queen Mary University of London

Date Written: May 2019

Abstract

This paper estimates the effect of hospital admissions among older workers on economic outcomes across countries. We use harmonized longitudinal survey data from the United States, China, and 13 countries in Europe, and follow the event study design of Dobkin, Finkelstein, Kluender and Notowidigdo (2018) to estimate dynamic effects of a hospitalization on out-of-pocket health expenditures, labor market outcomes, social insurance payments, and household income. We find distinctly different patterns across countries. In contrast to the United States, where hospitalizations lead to large health expenditures and decreases in earnings, individuals in Northern and Southern Europe are largely protected from negative economic outcomes. Hospitalizations in China lead to even larger out-of-pocket expenditures as a percent of prior income, but do not negatively affect labor market outcomes. Our results largely align with the differences in generosity across countries in social protection institutions that include health systems, social security programs and labor market regulations.

Keywords: cross-country differences, Health shocks, healthcare system, labor market protection, medical spending, social insurance program

JEL Classification: E21, H53, I13, I18

Suggested Citation

Mommaerts, Corina and Raza, Syed Hassan and Zheng, Yu, The Economic Consequences of Hospitalizations for Older Workers Across Countries (May 2019). CEPR Discussion Paper No. DP13753. Available at SSRN: https://ssrn.com/abstract=3395191

Corina Mommaerts (Contact Author)

University of Wisconsin - Madison - Department of Economics ( email )

Madison, WI
United States

Syed Hassan Raza

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

Shatin, N.T.
Hong Kong
Hong Kong

Yu Zheng

Queen Mary University of London ( email )

Mile End Rd
Mile End Road
London, London E1 4NS
United Kingdom

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