Does job loss cause ill health?

Martin Salm
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Martin Salm: Department of Econometrics and OR, Tilburg University, Tilburg, Netherlands, Postal: Department of Econometrics and OR, Tilburg University, Tilburg, Netherlands

Health Economics, 2009, vol. 18, issue 9, pages 1075-1089

Abstract: This study estimates the effect of job loss on health for near elderly employees based on longitudinal data from the Health and Retirement Study. Previous studies find a strong negative correlation between unemployment and health. To control for possible reverse causality, this study focuses on people who were laid off for an exogenous reason - the closure of their previous employers' business. I find no causal effect of exogenous job loss on various measures of physical and mental health. This suggests that the inferior health of the unemployed compared to the employed could be explained by reverse causality. Copyright © 2009 John Wiley & Sons, Ltd.

Date: 2009
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Persistent link: http://EconPapers.repec.org/RePEc:wly:hlthec:v:18:y:2009:i:9:p:1075-1089

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