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Job loss, disability insurance and health expenditure

Anikó Bíró and Péter Elek

Labour Economics, 2020, vol. 65, issue C

Abstract: We analyse the causal effect of job loss on disability insurance enrolment on a five-year horizon and the implications on health expenditure. Using administrative panel data from Hungary, we follow individuals displaced due to a mass lay-off and compare their labour force status to non-laid-off individuals with similar employment and health history. According to our estimates, being laid off increases the transition probability to disability 1.5-fold (or by 1.4% points) in four years, and half of the excess transitions occur within the first year. The four-year mortality rate increases 1.7-fold (or by 0.4% point).

Keywords: Administrative data; Disability insurance; Displacement; Health expenditure (search for similar items in EconPapers)
JEL-codes: C23 I12 I38 J63 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.labeco.2020.101856

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