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Health Shocks, Human Capital, and Labor Market Outcomes

Francisco Parro and R. Vincent Pohl ()

No 18-290, Upjohn Working Papers and Journal Articles from W.E. Upjohn Institute for Employment Research

Abstract: Health, human capital, and labor market outcomes are linked though complex connections that are not fully understood. We explore these links by estimating a flexible yet tractable dynamic model of human capital accumulation in the presence of health shocks using administrative data from Chile. We find that (i) human capital mitigates the negative labor market effects of health events, (ii) these alleviating effects operate through channels involving occupational choice, the frequency of exposure to health events, and access to health care, and (iii) the effect of health shocks on labor market outcomes is heterogeneous across industries and types of diagnoses.

Keywords: health shocks; hospitalizations; labor market outcomes; earnings; human capital (search for similar items in EconPapers)
JEL-codes: I10 I26 J22 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hea and nep-lma
Date: 2018-06
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