Long-term unemployment subsidies and middle-age disadvantaged workers’ health

José Ignacio Garcia-Pérez (), Manuel Serrano-Alarcón () and Judit Vall Castello
Additional contact information
José Ignacio Garcia-Pérez: Department of Economics, Universidad Pablo de Olavide & FEDEA;
Manuel Serrano-Alarcón: NOVA National School of Public Health, NOVA University of Lisbon Center for Research in Economics and Health, Universitat Pompeu Fabra;
Authors registered in the RePEc Author Service: J. Ignacio García Pérez ()

No 20.11, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: We estimate the labour market and health effects of a long-term unemployment (LTU) subsidy targeted to middle aged disadvantaged workers. In order to do so, we exploit a Spanish reform introduced in July 2012 that increased the age eligibility threshold to receive the subsidy from 52 to 55. Using a within-cohort identification strategy, we show that men ineligible for the subsidy were more likely to leave the labour force. In terms of health outcomes, although we do not report impacts on hospitalizations when considering the whole sample, we do find significant results when we separate the analysis by main diagnosis and gender. More specifically, we show a reduction by 12.9% in hospitalizations due to injuries as well as a drop by 2 percentage points in the probability of a mental health diagnosis for men who were eligible for the LTU subsidy. Our results highlight the role of long-term unemployment benefits as a protecting device for the health (both physical and mental) of middle aged, low educated men who are in a disadvantaged position in the labour market.

Keywords: disadvantaged workers; unemployment subsidies; health effects (search for similar items in EconPapers)
JEL-codes: H52 I23 I28 J24 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2020
New Economics Papers: this item is included in nep-age, nep-eur, nep-hea, nep-lma and nep-pbe
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Related works:
Journal Article: Long-term unemployment subsidies and middle-aged disadvantaged workers’ health (2024)
Working Paper: Long-term unemployment subsidies and middle-age disadvantaged workers’ health (2020)
Working Paper: Long-term unemployment subsidies and middle-age disadvantaged workers’ health (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:20.11

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