Labour market institutions and long term adjustments to health shocks: Evidence from Italian administrative records

Irene Simonetti, Michele Belloni, Elena Farina and Francesca Zantomio

Labour Economics, 2022, vol. 79, issue C

Abstract: We investigate how labour market institutions shape the labour response to acute cardiovascular shocks in a highly regulated labour market over the long run. Using Italian administrative data that covers the history of employment, social security and hospitalization of workers, we exploit several identification strategies to remove bias from observable and unobservable confounders. Significant reductions in employment and labour income emerge in the short run and persist over time, with no evidence of re-entry in the longer run. No adjustment is detected in working hours or wages for those who maintain employment. While the Disability Insurance (DI) system contributes to insure workers against the consequences of health shocks, we offer new evidence on the value of employment protective institutions in strengthening unhealthy workers’ labour inclusion, in particular for blue-collar workers.

Keywords: Health shocks; Employment; Labour market institutions; Employment protection; Administrative data (search for similar items in EconPapers)
JEL-codes: C14 I10 J24 J31 J63 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927537122001671
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:79:y:2022:i:c:s0927537122001671

DOI: 10.1016/j.labeco.2022.102277

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().