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The Effect of Job Loss on Health: Evidence from Biomarkers

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  • Pierre-Carl Michaud
  • Eileen Crimmins
  • Michael Hurd

Abstract

The effect of job loss on health may play an important role in the development of the SES-health gradient. In this paper, we estimate the effect of job loss on objective measures of physiological dysregulation using longitudinal data from the Health and Retirement Study and biomarker measures collected in 2006 and 2008. We use a variety of econometric methods to account for selection and reverse causality. Distinguishing between layoffs and business closures, we find no evidence that business closures lead to worse health outcomes. We also find no evidence that biomarker health measures predict subsequent job loss becaue of business closures. We do find evidence that layoffs lead to diminished health. Although this finding appears to be robust to confounders, we find that reverse causality tends to bias downward our estimates. Matching estimates, which account for self-reported health conditions prior to the layoff and subjective job loss expectations, suggest even stronger estimates of the effect of layoffs on health as measured from biomarkers, in particular for glycosylated hemoglobin (HbA1c) and C-reactive protein (CRP). Overall, we estimate that a layoff could increase annual mortality rates by 9.4%, which is consistent with other evidence of the effect of mass layoffs on mortality.

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  • Pierre-Carl Michaud & Eileen Crimmins & Michael Hurd, 2015. "The Effect of Job Loss on Health: Evidence from Biomarkers," CIRANO Working Papers 2015s-05, CIRANO.
    • Handle: RePEc:cir:cirwor:2015s-05
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    Cited by:

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    2. Fonseca, Raquel & Moro-Egido, Ana I. & Morin, Hugo, 2024. "Stress and retirement," Economic Modelling, Elsevier, vol. 131(C).
    3. Italo A. Gutierrez & Pierre-Carl Michaud, 2017. "Whistle While You Work: Job Insecurity and Older Workers' Mental Health in the United States," Cahiers de recherche 1702, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    4. Amélie Adeline & Ismaël Choinière Crèvecoeur & Raquel Fonseca & Pierre-Carl Michaud, 2019. "Income Volatility, Health and Well-Being," Cahiers de recherche / Working Papers 1906, Chaire de recherche sur les enjeux économiques intergénérationnels / Research Chair in Intergenerational Economics.
    5. Jakob Everding & Jan Marcus, 2020. "The effect of unemployment on the smoking behavior of couples," Health Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 154-170, February.
    6. Rocco, Lorenzo & Crema, Angela & Simonato, Lorenzo & Cestari, Laura, 2018. "The effect of job loss on pharmaceutical prescriptions," Social Science & Medicine, Elsevier, vol. 217(C), pages 73-83.
    7. Matthew D. Baird & Jonathan Cantor & Wendy M. Troxel & Tamara Dubowitz, 2022. "Job loss and psychological distress during the COVID‐19 pandemic: Longitudinal Analysis from residents in nine predominantly African American low‐income neighborhoods," Health Economics, John Wiley & Sons, Ltd., vol. 31(9), pages 1844-1861, September.
    8. Alan Piper & David G. Blanchflower & Alex Bryson, 2021. "Does Pain Lead to Job Loss? A Panel Study for Germany," NBER Working Papers 28863, National Bureau of Economic Research, Inc.
    9. Devillanova, Carlo & Raitano, Michele & Struffolino, Emanuela, 2019. "Longitudinal employment trajectories and health in middle life: Insights from linked administrative and survey data," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 1375-1412.
    10. Stefano Cellini & Livia Menezes & Martin Foureaux Koppensteiner, 2022. "Maternal Displacements during Pregnancy and the Health of Newborns," Discussion Papers 22-02, Department of Economics, University of Birmingham.
    11. Thomas F. Crossley & Federico Zilio, 2018. "The health benefits of a targeted cash transfer: The UK Winter Fuel Payment," Health Economics, John Wiley & Sons, Ltd., vol. 27(9), pages 1354-1365, September.
    12. Lee, Y-W.;, 2019. "Effects of Parental Job Loss and Insecurity on Children’s Health: Evidence from Korea," Health, Econometrics and Data Group (HEDG) Working Papers 19/09, HEDG, c/o Department of Economics, University of York.
    13. Nizalova, Olena & Norton, Edward C., 2021. "Long-term effects of job loss on male health: BMI and health behaviors," Economics & Human Biology, Elsevier, vol. 43(C).
    14. Alan Piper & David G. Blanchflower & Alex Bryson, 2023. "Is pain associated with subsequent job loss? A panel study for Germany," Kyklos, Wiley Blackwell, vol. 76(1), pages 141-158, February.
    15. Galárraga, Omar & Rana, Aadia & Rahman, Momotazur & Cohen, Mardge & Adimora, Adaora A. & Sosanya, Oluwakemi & Holman, Susan & Kassaye, Seble & Milam, Joel & Cohen, Jennifer & Golub, Elizabeth T. & Met, 2018. "The effect of unstable housing on HIV treatment biomarkers: An instrumental variables approach," Social Science & Medicine, Elsevier, vol. 214(C), pages 70-82.
    16. Miele, Kai R., 2024. "Mental Health and Labor Market Effects of Anticipating Job Loss," CINCH Working Paper Series (since 2020) 82169, Duisburg-Essen University Library, DuEPublico.
    17. Yong‐Woo Lee, 2022. "How do changes to parental job insecurity affect children's health?," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 5-24, January.
    18. 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.
    19. Vodopivec, Matija & Laporsek, Suzana & Stare, Janez & Vodopivec, Milan, 2021. "The Effects of Unemployment on Health, Hospitalizations, and Mortality - Evidence from Administrative Data," IZA Discussion Papers 14318, Institute of Labor Economics (IZA).
    20. Christos Zilidis & Christos Hadjichristodoulou, 2020. "Economic Crisis Impact and Social Determinants of Perinatal Outcomes and Infant Mortality in Greece," IJERPH, MDPI, vol. 17(18), pages 1-12, September.
    21. Been, J.; & Suari-Andreu, E.; & Knoef, M.;, 2022. "The short-run effects of unexpected job loss on health," Health, Econometrics and Data Group (HEDG) Working Papers 22/21, HEDG, c/o Department of Economics, University of York.

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    More about this item

    Keywords

    Job loss; Health; SES-health gradient; Biomarkers;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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