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Long-run effects of health shocks in a highly regulated labour market

Michele Belloni (), Irene Simonetti () and Francesca Zantomio ()
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Francesca Zantomio: University of Turin, http://www.est.unito.it/

Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin

Abstract: Based on administrative data covering employment, social security and hospital record histories, we investigate the effect of acute cardiovascular health shocks resulting in unplanned hospitalisation, on blue collars’ long-term labour outcomes in Italy. The Italian institutional setting, characterised by a highly regulated labour market and high job protection, is different from that of countries - mainly Nordic and Anglo-Saxon -covered in previous studies. We apply matching and parametric regression techniques to remove possible bias arising from observable and time-invariant unobservable confounders. Results point at sizeable and persistent reductions in employment and labour income, while hours and wage adjustments appear limited. Whereas a relatively generous social insurance system might compensate the earnings loss, our findings question the appropriateness of existing labour inclusion policies.

Pages: pages 53
Date: 2019-11
New Economics Papers: this item is included in nep-eur, nep-hea and nep-ias
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Persistent link: https://EconPapers.repec.org/RePEc:uto:dipeco:201922

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