Health and Labor Market Consequences of Low-Value Care: The Role of Practice Style

Mattia Albertini (), Pieter Bakx () and Fabrizio Mazzonna ()
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Mattia Albertini: University of Svizzera Italiana
Pieter Bakx: Erasmus University Rotterdam
Fabrizio Mazzonna: USI Università della Svizzera Italiana

No 17771, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We investigate the health and labor market consequences of primary care variation in benzodiazepine prescriptions, a common type of low-value care. Linking Dutch general practitioners’ records to administrative data, we construct an exogenous measure of prescribing behavior that exploits institutional constraints limiting patient choice. Using the loss of a close relative as a common mental health shock and a dynamic difference-in-differences approach, we find that patients treated by high-prescribing GPs are more likely to receive out-of-guidelines benzodiazepine prescriptions, become long-term users, and are less likely to access specialized mental health care. These patients also experience worse labor market outcomes, including increased short-term reliance on unemployment benefits and substantial long-term declines in earnings, primarily driven by reduced wages.

Keywords: labor market; mental health; prescribing style; primary care; benzodiazepine; bereavement (search for similar items in EconPapers)
JEL-codes: I11 I18 J24 (search for similar items in EconPapers)
Date: 2025-03
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