Mortality, Mass-Layoffs, and Career Outcomes: An Analysis Using Administrative Data
47 Pages Posted: 22 Dec 2006
Date Written: November 2006
Seemingly short-term labor market shocks, such as job displacements, can have persistent effects on workers' earnings, employment, job stability, consumption, and access to health insurance. A long literature suggests such changes in workers' socioeconomic conditions can have potentially important effects on health outcomes, but existing studies associating job loss to health status face several problems of measurement and identification. This paper uses a large longitudinal administrative data set of quarterly earnings and employer records matched to information on individual mortality outcomes to estimate the long-term effect of a job loss during a mass layoff on mortality. We find that a job loss leads to a 15-20% increase in the probability of dying in the 20 years following a job loss. The initial and the long-run responses are particular pronounced.
Keywords: Job loss, displacement, mortality
JEL Classification: I10, J65, J68
Suggested Citation: Suggested Citation