The Effect of Health Shocks on Labour Market Outcomes in Russia

32 Pages Posted: 11 Nov 2020

See all articles by Ekaterina Aleksandrova

Ekaterina Aleksandrova

National Research University Higher School of Economics

Venera Bagranova

National Research University Higher School of Economics

Christopher J. Gerry

University of Oxford, OSGA and St Antony's College; HSE St. Petersburg, International Centre for Health Economics, Management and Policy

Date Written: November 10, 2020

Abstract

This paper provides evidence for the effects of health shocks measured by any negative change in self-assessed health (SAH) status on employment, personal income, and wages in the Russian population. We employ the average treatment effect on the treated (ATET) estimator combined with propensity score and nearest neighbour matching and data from Russian Longitudinal Monitoring Survey-HSE (RLMS-HSE) for 2000–2018. We find that adverse health shocks are associated with a reduction in the probability of remaining employed by 2%, and losses of income and wages of 17% and 11%, respectively. For men the consequences of health shocks are more drastic. Severe health shocks that are measured as a drop in SAH by two or more levels are associated with greater losses: respondents aged 30–45 years old lose approximately 60% of their monthly income for severe shocks, and those aged 46–72 lose 35–45% of their wages and 9–10% in the probability of remaining employed.

Keywords: health shock, labour market outcomes, matching, difference-in-difference, Russia

JEL Classification: C23, I12, J60.

Suggested Citation

Aleksandrova, Ekaterina and Bagranova, Venera and Gerry, Christopher J., The Effect of Health Shocks on Labour Market Outcomes in Russia (November 10, 2020). Higher School of Economics Research Paper No. WP BRP 237/EC/2020, Available at SSRN: https://ssrn.com/abstract=3727915 or http://dx.doi.org/10.2139/ssrn.3727915

Ekaterina Aleksandrova

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Venera Bagranova (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Christopher J. Gerry

University of Oxford, OSGA and St Antony's College ( email )

11
Bevington Road
Oxford, Oxfordshire OX26LH
United Kingdom

HSE St. Petersburg, International Centre for Health Economics, Management and Policy ( email )

Souza Pechatnikov street, 16
St. Petersburg, St. Petersburg 190008
Russia

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