The Effects of Unemployment Spells on Prevention Behaviors - A Panel Data Analysis

Abstract

Background. Prior research using time series geographic data in the US and Finland has produced conflicting conclusions about the effect of unemployment on prevention behaviors.

Objective. This study examines whether prevention behavior (physical activity and obesity) differs during periods of persistent unemployment, recent unemployment and employment.

Methods. The primary estimation uses within-individual fixed effect regression to identify whether an individual's behavior changes in response to employment status.

Results. Persistent unemployment reduces the probability of participating in physical activity. There does not appear to be much difference in prevention effort after recent unemployment relative to periods of persistent employment.

Conclusions. Despite the lower cost of time, this analysis suggests that short run unemployment does not appear to increase physical activity or reduce BMI. In contrast to prior analyses of US data, longer spells of unemployment reduce the probability of participating in physical activity.

Keywords: Physical Activity, Prevention, Unemployment

JEL Classification: I12