Effects of unemployment insurance duration on mental and physical health

Alexander Ahammer and Analisa Packham

Journal of Public Economics, 2023, vol. 226, issue C

Abstract: Using administrative data for Upper Austrian workers from 2003–2013, we show that a 9-week extension in unemployment insurance (UI) duration increases nonemployment length by 4 days, on average, and impacts worker physical and mental health. These effects vary by gender. Specifically, we find that female workers eligible for an additional 9 weeks of UI benefits reduce opioid and antidepressant prescriptions by 0.5 percentage points (50%) and 0.9 percentage points (11%), respectively. Moreover, we find some evidence of beneficial within-household spillovers for young children. For male workers, we find little evidence of health effects of extending UI benefit duration. We posit that these differential effects are driven by a combination of income and occupational changes that also vary by gender.

Keywords: Unemployment insurance; Health; Opioids (search for similar items in EconPapers)
JEL-codes: I18 I38 J16 J18 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:226:y:2023:i:c:s0047272723001780

DOI: 10.1016/j.jpubeco.2023.104996

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