Income and Employment Effects of Health Shocks - A Test Case for the German Welfare State

Regina Riphahn

No 10, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using data from the first eleven waves of the German Socio-Economic Panel this study investigates the dynamic effects of health shocks on employment and economic well-being of older workers. A health shock trebles the probability of leaving the labor force and almost doubles the unemployment risk. The financial effects of health shocks are small on average and those individuals with the highest remaining earnings potential are least affected by the health shock. Welfare state instruments support the poorest section of the population but do not succeed in neutralizing the effects of a health shock for these groups

Keywords: health; labor force participation; welfare state; earnings (search for similar items in EconPapers)
JEL-codes: I10 J21 J26 J28 (search for similar items in EconPapers)
Pages: 42 pages
Date: 1998-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published - published in: Journal of Population Economics, 1999, 12 (3), 363-389

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Journal Article: Income and employment effects of health shocks A test case for the German welfare state (1999)
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