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Heterogeneity in the Impact of Health Shocks on Labor Outcomes: Evidence from Swedish Workers

Lundborg, Petter LU ; Vikström, Johan and Nilsson, Martin (2015) In Oxford Economic Papers 67(3). p.715-739
Abstract
This article provides new evidence on heterogeneity in the impact of health shocks by using register-based data on the entire population of Swedish workers. We formulate a difference-in-difference design, where we compare the change in labour earnings across matched workers with a high and low level of education who experience the same type of health shocks. Our results suggest major heterogeneity in the effects, where a given health shock has a greater relative negative impact on low-skilled individuals/individuals with a low level of education. These results hold across different types of health shocks and become more pronounced with age. Low-skilled workers are also more likely to leave the labour force and receive disability insurance,... (More)
This article provides new evidence on heterogeneity in the impact of health shocks by using register-based data on the entire population of Swedish workers. We formulate a difference-in-difference design, where we compare the change in labour earnings across matched workers with a high and low level of education who experience the same type of health shocks. Our results suggest major heterogeneity in the effects, where a given health shock has a greater relative negative impact on low-skilled individuals/individuals with a low level of education. These results hold across different types of health shocks and become more pronounced with age. Low-skilled workers are also more likely to leave the labour force and receive disability insurance, sickness insurance, and unemployment benefits following a health shock. Our results suggest that heterogeneity in the effect of health shocks offers one explanation as to how the educational gradient in health arises. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Oxford Economic Papers
volume
67
issue
3
pages
715 - 739
publisher
Oxford University Press
external identifiers
  • wos:000360922100009
  • scopus:84938541896
ISSN
1464-3812
DOI
10.1093/oep/gpv034
language
English
LU publication?
yes
id
c2a5dfe4-0e88-481d-8e72-d0f7c9b99810 (old id 7357603)
date added to LUP
2015-06-16 16:46:11
date last changed
2017-08-06 03:26:12
@article{c2a5dfe4-0e88-481d-8e72-d0f7c9b99810,
  abstract     = {This article provides new evidence on heterogeneity in the impact of health shocks by using register-based data on the entire population of Swedish workers. We formulate a difference-in-difference design, where we compare the change in labour earnings across matched workers with a high and low level of education who experience the same type of health shocks. Our results suggest major heterogeneity in the effects, where a given health shock has a greater relative negative impact on low-skilled individuals/individuals with a low level of education. These results hold across different types of health shocks and become more pronounced with age. Low-skilled workers are also more likely to leave the labour force and receive disability insurance, sickness insurance, and unemployment benefits following a health shock. Our results suggest that heterogeneity in the effect of health shocks offers one explanation as to how the educational gradient in health arises.},
  author       = {Lundborg, Petter and Vikström, Johan and Nilsson, Martin},
  issn         = {1464-3812},
  language     = {eng},
  number       = {3},
  pages        = {715--739},
  publisher    = {Oxford University Press},
  series       = {Oxford Economic Papers},
  title        = {Heterogeneity in the Impact of Health Shocks on Labor Outcomes: Evidence from Swedish Workers},
  url          = {http://dx.doi.org/10.1093/oep/gpv034},
  volume       = {67},
  year         = {2015},
}