Losing Heart? The Effect of Job Displacement on Health

Author:

Black Sandra E.,Devereux Paul J.,Salvanes Kjell G.1

Affiliation:

1. Sandra E. Black is a Professor of Economics at the University of Texas, Austin. Paul J. Devereux is a Professor at the School of Economics, University College Dublin. Kjell G. Salvanes is a Professor at the Norwegian School of Economics.

Abstract

Job reallocation is considered a key characteristic of well-functioning labor markets, as more productive firms grow and less productive ones contract or close. Despite its potential benefits for the economy, however, costs that are borne by the displaced workers are significant. The authors study how job displacement in Norway affects cardiovascular health, using a sample of men and women who are predominantly in their early 40s. To do so, they merge survey data on health and health behaviors with register data on person and firm characteristics. The authors compare the health of displaced and non-displaced workers from five years before to seven years after displacement. Results show that job displacement leads to an increase in smoking behavior for both men and women but few other short-term health effects. These results are robust to a variety of specification checks.

Publisher

SAGE Publications

Subject

Management of Technology and Innovation,Organizational Behavior and Human Resource Management,Strategy and Management

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