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

Michele Belloni, Antonella Bena (), Elena Farina (), Irene Simonetti () and Francesca Zantomio
Additional contact information
Antonella Bena: Department of Epidemiology, ASL TO3 Grugliasco, Turin
Elena Farina: Department of Epidemiology, ASL TO3 Grugliasco, Turin

No 2019: 32, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

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.

Keywords: Health shocks; employment; labour market institutions; administrative data (search for similar items in EconPapers)
JEL-codes: C14 I10 J22 J24 J31 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2019
New Economics Papers: this item is included in nep-eur, nep-hea and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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