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Health and Health Inequality during the Great Recession: Evidence from the PSID

Author

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  • Chenggang Wang

    (University of Hawaii at Manoa, Department of Economics)

  • Huixia Wang

    (Hunan University, School of Economics and Trade)

  • Timothy J. Halliday

    (University of Hawaii at Manoa, Department of Economics; University of Hawaii Economic Research Organization)

Abstract

We estimate the impact of the Great Recession of 2007-2009 on health outcomes in the United States. We show that a one percentage point increase in the unemployment rate resulted in a 7.8-8.8 percent increase in reports of poor health. Mental health was also adversely impacted and reports of chronic drinking increased. The bulk of the effects were borne by white Americans and the less educated.

Suggested Citation

  • Chenggang Wang & Huixia Wang & Timothy J. Halliday, 2017. "Health and Health Inequality during the Great Recession: Evidence from the PSID," Working Papers 2017-4R, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2017-4r
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    3. Janke, Katharina & Lee, Kevin & Propper, Carol & Shields, Kalvinder & Shields, Michael A., 2020. "Macroeconomic Conditions and Health in Britain: Aggregation, Dynamics and Local Area Heterogeneity," IZA Discussion Papers 13091, Institute of Labor Economics (IZA).
    4. Zhao, Yuejun, 2023. "Job displacement and the mental health of households: Burden sharing counteracts spillover," Labour Economics, Elsevier, vol. 81(C).
    5. Nicolò Russo & Rory McGee & Mariacristina De Nardi & Margherita Borella & Ross Abram, 2024. "Health Inequality and Economic Disparities by Race, Ethnicity, and Gender," NBER Working Papers 32971, National Bureau of Economic Research, Inc.
    6. Mario Martínez-Jiménez & Judit Vall Castelló, 2020. "Effects of macroeconomic fluctuations on mental health and psychotropic medicine consumption," International Journal of Health Economics and Management, Springer, vol. 20(3), pages 277-297, September.
    7. De, Prabal K. & Segura-Escano, Raul, 2021. "Drinking during downturn: New evidence from the housing market fluctuations in the United States during the Great Recession," Economics & Human Biology, Elsevier, vol. 43(C).
    8. Valerie Mueller & Karen Grépin & Atonu Rabbani & Anne Ngunjiri & Amy Oyekunle & Clare Wenham, 2023. "Domestic Burdens Amid Covid-19 and Women’s Mental Health in Middle-Income Africa," Feminist Economics, Taylor & Francis Journals, vol. 29(2), pages 192-218, April.
    9. Michele Ubaldi & Matteo Picchio, 2024. "In the wrong place at the wrong time. The impact of mass shooting exposure on mental health," Working Papers 491, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
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    12. Li Donni, Paolo, 2019. "The unobserved pattern of material hardship and health among older Americans," Journal of Health Economics, Elsevier, vol. 65(C), pages 31-42.
    13. Timothy M. Smeeding, 2018. "The PSID in Research and Policy," The ANNALS of the American Academy of Political and Social Science, , vol. 680(1), pages 29-47, November.
    14. Kronenberg, Christoph & Boehnke, Jan R., 2019. "How did the 2008-11 financial crisis affect work-related common mental distress? Evidence from 393 workplaces in Great Britain," Economics & Human Biology, Elsevier, vol. 33(C), pages 193-200.
    15. Lizhong Peng & Jie Chen & Xiaohui Guo, 2022. "Macroeconomic conditions and health‐related outcomes in the United States: A metropolitan and micropolitan statistical area‐level analysis between 2004 and 2017," Health Economics, John Wiley & Sons, Ltd., vol. 31(1), pages 3-20, January.
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    More about this item

    Keywords

    Great Recession; Health Behaviors; Health Outcomes; Inequality;
    All these keywords.

    JEL classification:

    • I0 - Health, Education, and Welfare - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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