Health shocks and labour market outcomes: Evidence from The Irish Longitudinal Study on Ageing (TILDA)

41 Pages Posted: 7 Apr 2021

See all articles by Likun Mao

Likun Mao

The Irish Longitudinal Study on Ageing (TILDA)

Charles Normand

Trinity College (Dublin)

Date Written: June 29, 2020

Abstract

Using longitudinal data from the Irish Longitudinal Study on Ageing (TILDA), this study examines the link between health shocks and labour market outcomes and provides new evidence based on a post-crisis sample of older workers. We investigate two types of health shocks, objective measures of recent hospitalization and the first onset of a specific chronic condition during the survey period between 2009 and 2018. By adopting an Inverse Probability Weighted Regression Adjustment (IPRWA) method to address selection bias in health events, we find a negative but weak effect of health shocks on labour market outcomes despite a statistically significant association with future health deterioration and healthcare utilisation. The effect varies by shock types, gender and different outcomes, and is relatively larger for females and socioeconomically disadvantaged groups. When examining potential channels, we further consider healthcare entitlements and find some suggestive evidence on the protective effect of public health entitlements on working capacity.

Keywords: Retirement, Older workers, Health shocks, Healthcare entitlements

JEL Classification: J14, J21, J26

Suggested Citation

Mao, Likun and Normand, Charles, Health shocks and labour market outcomes: Evidence from The Irish Longitudinal Study on Ageing (TILDA) (June 29, 2020). Available at SSRN: https://ssrn.com/abstract=3637812 or http://dx.doi.org/10.2139/ssrn.3637812

Likun Mao (Contact Author)

The Irish Longitudinal Study on Ageing (TILDA) ( email )

Trinity College Dublin, the University of Dublin
152-160 Pearse St, Dublin
Dublin, Dublin Dublin 2
Ireland

Charles Normand

Trinity College (Dublin) ( email )

2-3 College Green
Dublin, Leinster D2
Ireland

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