Coping with Health Shocks and Role of Spouse: Evidence from Japanese Household Panel Survey

27 Pages Posted: 1 Jul 2024

See all articles by Kazuo Ogawa

Kazuo Ogawa

Osaka University - Institute of Social and Economic Research (ISER)

Abstract

Hospitalization is a serious health shock that reduces household income. However, income loss is not uniform across households. This study makes a quantitative comparison of income loss caused by hospitalization for two different types of households: married households and single households, using Japanese household panel survey from 2009 to 2020. We find that wife increases her labor supply when her husband is hospitalized and income loss of the household is substantially mitigated. We also find that income loss is largest when single female is hospitalized. Our evidence suggests that added worker effect by the wife of hospitalized husband is quantitatively important.

Keywords: hospitalization, income loss, added worker effect, caregiver effect, random-effects ordered probit model

Suggested Citation

Ogawa, Kazuo, Coping with Health Shocks and Role of Spouse: Evidence from Japanese Household Panel Survey. Available at SSRN: https://ssrn.com/abstract=4877058 or http://dx.doi.org/10.2139/ssrn.4877058

Kazuo Ogawa (Contact Author)

Osaka University - Institute of Social and Economic Research (ISER) ( email )

6-1 Mihogaoka
Ibaraki, Osaka 567-0047
Japan
+81 6 6879 8570 (Phone)

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