IDEAS home Printed from https://ideas.repec.org/a/eee/labeco/v69y2021ics0927537121000026.html
   My bibliography  Save this article

The unequal impact of ill health: Earnings, employment, and mental health among breast cancer survivors in Finland

Author

Listed:
  • Vaalavuo, Maria

Abstract

I study the impact of breast cancer on earnings, employment, and mental health among Finnish women, specifically examining whether there is a heterogeneous impact according to socioeconomic status. In addition, the contribution of the article lies in investigating the extent to which mental health problems mediate the impact on earnings and employment, and how efficiently social insurance system protects individuals from income loss due to sickness. The empirical analyses are based on unique register data including the total population of Finland from 2000 to 2016. As an identification strategy, the exact timing of cancer diagnosis is used. The results are based on difference-in-differences estimations. Breast cancer has an overall impact of –5.1 percent on annual earnings with significant differences between earnings quintiles: the negative impact in the second earnings quintile is the largest, –8.9 percent. Results hold when using other socioeconomic variables, while the impact is bigger when we include women with weaker labor market attachment to the analysis. Mental health problems mediate the impact only modestly. The negative effect is smaller when looking at total income highlighting the importance of the Finnish welfare state to buffer effects of ill health on economic well-being.

Suggested Citation

  • Vaalavuo, Maria, 2021. "The unequal impact of ill health: Earnings, employment, and mental health among breast cancer survivors in Finland," Labour Economics, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:labeco:v:69:y:2021:i:c:s0927537121000026
    DOI: 10.1016/j.labeco.2021.101967
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927537121000026
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.labeco.2021.101967?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Petri Böckerman & Ohto Kanninen & Ilpo Suoniemi, 2018. "A kink that makes you sick: The effect of sick pay on absence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(4), pages 568-579, June.
    2. Itzik Fadlon & Torben Heien Nielsen, 2019. "Family Health Behaviors," American Economic Review, American Economic Association, vol. 109(9), pages 3162-3191, September.
    3. Lindeboom, Maarten & Llena-Nozal, Ana & van der Klaauw, Bas, 2016. "Health shocks, disability and work," Labour Economics, Elsevier, vol. 43(C), pages 186-200.
    4. Hoffmann, Rasmus & Kröger, Hannes & Pakpahan, Eduwin, 2018. "Pathways between socioeconomic status and health: Does health selection or social causation dominate in Europe?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 36, pages 23-36.
    5. Petter Lundborg & Martin Nilsson & Johan Vikström, 2015. "Heterogeneity in the impact of health shocks on labour outcomes: evidence from Swedish workers," Oxford Economic Papers, Oxford University Press, vol. 67(3), pages 715-739.
    6. Bradley, Cathy J. & Neumark, David & Bednarek, Heather L. & Schenk, Maryjean, 2005. "Short-term effects of breast cancer on labor market attachment: results from a longitudinal study," Journal of Health Economics, Elsevier, vol. 24(1), pages 137-160, January.
    7. Dana Goldman & James P. Smith, 2005. "Socioeconomic Differences in the Adoption of New Medical Technologies," American Economic Review, American Economic Association, vol. 95(2), pages 234-237, May.
    8. Heinesen, Eskil & Imai, Susumu & Maruyama, Shiko, 2018. "Employment, job skills and occupational mobility of cancer survivors," Journal of Health Economics, Elsevier, vol. 58(C), pages 151-175.
    9. Heinesen, Eskil & Kolodziejczyk, Christophe, 2013. "Effects of breast and colorectal cancer on labour market outcomes—Average effects and educational gradients," Journal of Health Economics, Elsevier, vol. 32(6), pages 1028-1042.
    10. Pilar García-Gómez & Hans van Kippersluis & Owen O’Donnell & Eddy van Doorslaer, 2013. "Long-Term and Spillover Effects of Health Shocks on Employment and Income," Journal of Human Resources, University of Wisconsin Press, vol. 48(4), pages 873-909.
    11. Moran, John R. & Short, Pamela Farley & Hollenbeak, Christopher S., 2011. "Long-term employment effects of surviving cancer," Journal of Health Economics, Elsevier, vol. 30(3), pages 505-514, May.
    12. Adda, Jerome & Chandola, Tarani & Marmot, Michael, 2003. "Socio-economic status and health: causality and pathways," Journal of Econometrics, Elsevier, vol. 112(1), pages 57-63, January.
    13. Halleröd, Björn & Gustafsson, Jan-Eric, 2011. "A longitudinal analysis of the relationship between changes in socio-economic status and changes in health," Social Science & Medicine, Elsevier, vol. 72(1), pages 116-123, January.
    14. McDonough, Peggy & Amick, Benjamin C., 2001. "The social context of health selection: a longitudinal study of health and employment," Social Science & Medicine, Elsevier, vol. 53(1), pages 135-145, July.
    15. Kolodziejczyk, Christophe & Heinesen, Eskil, 2016. "Labour market participation after breast cancer for employees from the private and public sectors: Educational and sector gradients in the effect of cancer," Economics & Human Biology, Elsevier, vol. 21(C), pages 33-55.
    16. Aittomäki, Akseli & Martikainen, Pekka & Laaksonen, Mikko & Lahelma, Eero & Rahkonen, Ossi, 2012. "Household economic resources, labour-market advantage and health problems – A study on causal relationships using prospective register data," Social Science & Medicine, Elsevier, vol. 75(7), pages 1303-1310.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Böckerman, Petri & Kortelainen, Mika & Salokangas, Henri & Vaalavuo, Maria, 2023. "Family Affair? Long-Term Economic and Mental Effects of Spousal Cancer," IZA Discussion Papers 16005, Institute of Labor Economics (IZA).
    2. Riekhoff, Aart-Jan & Vaalavuo, Maria, 2021. "Health shocks and couples’ labor market participation: A turning point or stuck in the trajectory?," Social Science & Medicine, Elsevier, vol. 276(C).
    3. Ahammer, Alexander & Pruckner, Gerald J. & Stiftinger, Flora, 2024. "The Labor and Health Economics of Breast Cancer," IZA Discussion Papers 17316, Institute of Labor Economics (IZA).
    4. Pinna Pintor, Matteo & Fumagalli, Elena & Suhrcke, Marc, 2024. "The impact of health on labour market outcomes: A rapid systematic review," Health Policy, Elsevier, vol. 143(C).
    5. Jansen, Andreas, 2022. "Business as Usual, Karrierebremse oder "Karriere-Killer": Der Einfluss chronischer Erkrankungen auf den Erwerbs-und Einkommensverlauf," IAQ-Report 2022-07, University of Duisburg-Essen, Institute for Work, Skills and Training (IAQ).
    6. Obukohwo Oba Efayena & Hyacinth Eme Ichoku, 2024. "The Disability Gap In Employment In Developing Economies: Evidence From The Nigerian Labour Market," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 69(242), pages 129-153, July – Se.
    7. Richard K. Moussa & Eric Delattre, 2023. "Dynamics of interactions between health and employment statuses: a panel data approach," SN Business & Economics, Springer, vol. 3(8), pages 1-26, August.
    8. Henri Salokangas, 2021. "Exploring the labor market consequences of psychiatric disorders: An event study approach," Discussion Papers 148, Aboa Centre for Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Candon, 2019. "The joint effect of health shocks and eligibility for social security on labor supply," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 969-988, September.
    2. Jones, M.A. & Rice, N. & Zantomio, F., 2016. "Acute health shocks and labour market outcomes," Health, Econometrics and Data Group (HEDG) Working Papers 16/04, HEDG, c/o Department of Economics, University of York.
    3. Alexander Ahammer & Gerald J. Pruckner & Flora Stiftinger, 2024. "The labor and health economics of breast cancer," Economics working papers 2024-09, Department of Economics, Johannes Kepler University Linz, Austria.
    4. Heinesen, Eskil & Imai, Susumu & Maruyama, Shiko, 2018. "Employment, job skills and occupational mobility of cancer survivors," Journal of Health Economics, Elsevier, vol. 58(C), pages 151-175.
    5. Jones, Andrew M. & Rice, Nigel & Zantomio, Francesca, 2020. "Acute health shocks and labour market outcomes: Evidence from the post crash era," Economics & Human Biology, Elsevier, vol. 36(C).
    6. Belloni, Michele & Simonetti, Irene & Zantomio, Francesca, 2019. "Long-run effects of health shocks in a highly regulated labour market," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201922, University of Turin.
    7. Kolodziejczyk, Christophe & Heinesen, Eskil, 2016. "Labour market participation after breast cancer for employees from the private and public sectors: Educational and sector gradients in the effect of cancer," Economics & Human Biology, Elsevier, vol. 21(C), pages 33-55.
    8. Simonetti, Irene & Belloni, Michele & Farina, Elena & Zantomio, Francesca, 2022. "Labour market institutions and long term adjustments to health shocks: Evidence from Italian administrative records," Labour Economics, Elsevier, vol. 79(C).
    9. Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    10. Candon, David, 2018. "The effect of cancer on the labor supply of employed men over the age of 65," Economics & Human Biology, Elsevier, vol. 31(C), pages 184-199.
    11. Crego, Julio & Kárpáti, Daniel & Kværner, Jens & Renneboog, Luc, 2022. "The Economic Value of Eliminating Diseases," Other publications TiSEM 8b51764f-3ccd-4bb8-9da1-4, Tilburg University, School of Economics and Management.
    12. Eskil Heinesen & Christophe Kolodziejczyk & Jacob Ladenburg & Ingelise Andersen & Karsten Thielen, 2017. "Return to work after cancer and pre-cancer job dissatisfaction," Applied Economics, Taylor & Francis Journals, vol. 49(49), pages 4982-4998, October.
    13. Trevisan, Elisabetta & Zantomio, Francesca, 2016. "The impact of acute health shocks on the labour supply of older workers: Evidence from sixteen European countries," Labour Economics, Elsevier, vol. 43(C), pages 171-185.
    14. Riekhoff, Aart-Jan & Vaalavuo, Maria, 2021. "Health shocks and couples’ labor market participation: A turning point or stuck in the trajectory?," Social Science & Medicine, Elsevier, vol. 276(C).
    15. Thomas Barnay & Emmanuel Duguet & Christine Le Clainche, 2019. "The Effects of Breast Cancer on Individual Labour Market Outcomes: An Evaluation from an Administrative Panel in France," Annals of Economics and Statistics, GENES, issue 136, pages 103-126.
    16. Emmanuel Duguet & Christine Le Clainche, 2020. "The Socioeconomic and Gender Impacts of Health Events on Employment Transitions in France: A Panel Data Study," Journal of Human Capital, University of Chicago Press, vol. 14(3), pages 449-483.
    17. Z.V. Kambourova & W.H.J. Hassink, 2019. "Husband’s labour supply after a breast cancer diagnosis," Working Papers 19-10, Utrecht School of Economics.
    18. Ekaterina Aleksandrova & Venera Bagranova & Christopher J Gerry, 2021. "The effect of health shocks on labour market outcomes in Russia [Ageing and unused capacity in Europe: is there an early retirement trap?]," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 45(6), pages 1319-1336.
    19. De Gruyter, Elaine & Petrie, Dennis & Black, Nicole, 2023. "Household donations of time and money in response to a health shock," Social Science & Medicine, Elsevier, vol. 333(C).
    20. Macchioni Giaquinto, Annarita & Jones, Andrew M. & Rice, Nigel & Zantomio, Francesca, 2021. "Labour supply and informal care responses to health shocks within couples: evidence from the UKHLS," GLO Discussion Paper Series 806, Global Labor Organization (GLO).

    More about this item

    Keywords

    Breast cancer; Causal impact; Difference-in-differences; Earnings; Employment; Inequality; Mental health; Register data;
    All these keywords.

    JEL classification:

    • D - Microeconomics
    • I - Health, Education, and Welfare

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:69:y:2021:i:c:s0927537121000026. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/labeco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.