Is Unemployment Harmful to Health? Evidence from Britain

Abstract

This paper investigates the effects of unemployment on health in Britain. It examines the effects of socio-economic variables on the duration of spells of good health by using an accelerated failure time model. Two different measures of health are used, self-assessed health and mobility problems (an objective health index based on a modified 'activities of daily living' index). Furthermore, the paper analyses whether socio-economic effects on good health duration vary between males and females and between the older and younger workforce. The analysis takes into account the role of lifestyle factors. It is found that employment status, education and income have significant effects on the duration of spells of good health. Importantly, unemployment adversely affects the duration of spells of good health, and income exerts a significant positive effect.

Keywords: Unemployment duration, hazard functions

JEL Classification: C23, C33, I12, J100, J69