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The labor and health economics of breast cancer

Author

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  • Alexander Ahammer
  • Gerald J. Pruckner
  • Flora Stiftinger

Abstract

We estimate the long-run labor market and health effects of breast cancer among Austrian women. Compared to a random sample of same-aged non-affected women, those diagnosed with breast cancer face a 22.8 percent increase in health expenses, 6.2 percent lower employment, and a wage penalty of 15 percent five years after diagnosis. Although affected women sort into higher quality jobs post-diagnosis, this is offset by a reduction in working hours. We argue that the hours reduction is more likely driven by an increase in the time preference rate, meaning that patients increasingly value the present over the future, rather than by an incapacitation effect or employer discrimination.

Suggested Citation

  • 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.
    • Handle: RePEc:jku:econwp:2024-09
    Note: English
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    Keywords

    Breast cancer; labor supply; health shocks; time discounting;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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