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Effects of Health Shocks on Adult Children's Labor Market Outcomes and Well-Being

Author

Listed:
  • Ramirez Lizardi, Eduardo

    (University of Oslo)

  • Fevang, Elisabeth

    (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    (Ragnar Frisch Centre for Economic Research)

  • Øien, Henning

    (Norwegian Institute of Public Health)

Abstract

Using Norwegian administrative register data, we assess the impact of health shocks hitting lone parents, specifically stroke and hip fractures, on labor market outcomes and the well-being of adult offspring. We identify small, but statistically significant immediate responses in terms of an increase in physician-certified sickness absences and a higher risk of diagnosed mental disorders. However, these effects tend to fade out quickly, and the negative impacts on subsequent employment and earnings are small and only borderline statistically significant. In general, our results suggest that the responses to the deteriorating health of a parent tend to be short-lived and mostly manifest as temporary absences from work rather than complete detachment from the labor market.

Suggested Citation

  • Ramirez Lizardi, Eduardo & Fevang, Elisabeth & Røed, Knut & Øien, Henning, 2024. "Effects of Health Shocks on Adult Children's Labor Market Outcomes and Well-Being," IZA Discussion Papers 17232, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17232
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    File URL: https://docs.iza.org/dp17232.pdf
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    References listed on IDEAS

    as
    1. Signe A. Abrahamsen & Maja Weemes Grøtting, 2023. "Formal care of the elderly and health outcomes among adult daughters," Health Economics, John Wiley & Sons, Ltd., vol. 32(2), pages 436-461, February.
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      More about this item

      Keywords

      health shocks; labor supply; mental health; informal care; parental health; event-studies;
      All these keywords.

      JEL classification:

      • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
      • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
      • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
      • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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