The Effects of Health and Local Unemployment on Job Promotions

Juergen Jung and Vinish Shrestha ()
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Vinish Shrestha: Department of Economics, Towson University

No 2023-03, Working Papers from Towson University, Department of Economics

Abstract: We study how work-limiting health issues and local economic conditions are associated with career advancement using U.S. panel data from 1987--2016. We find that work-limiting health issues are linked to lower promotion probabilities only for individuals residing in areas with high unemployment. This association is concentrated among individuals who do not or cannot move out of such areas. The combined exposure to poor health and weak local labor markets is most strongly associated with reduced promotion prospects between ages 30--40, a key stage for career progression, while associations are weaker for younger workers and those nearing retirement. Differences by gender and race are small. The negative association persists over time and remains measurable up to six years later.

Keywords: Job promotions; health shocks; life cycle labor market effects; local area unemployment. (search for similar items in EconPapers)
JEL-codes: J16 J62 J63 J71 M51 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2023-06, Revised 2026-05
New Economics Papers: this item is included in nep-lab and nep-mfd
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Persistent link: https://EconPapers.repec.org/RePEc:tow:wpaper:2023-03

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