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Is Healthcare Employment Resilient and “Recession Proof”?

Author

Listed:
  • Marcus Dillender
  • Andrew I. Friedson
  • Cong T. Gian
  • Kosali I. Simon

Abstract

Conventional wisdom often holds that the healthcare sector fares better than other sectors during economic downturns. However, little research has examined the relationship between local economic conditions and healthcare employment. Understanding how the healthcare sector responds to economic conditions is important for policy makers seeking to ensure an adequate supply of healthcare workers, as well as for those directing displaced workers into new jobs. We examine the impact of macroeconomic conditions on both the healthcare labor market and the pipeline of healthcare workers receiving healthcare degrees during a pre-COVID time period, 2005-2017. Our results indicate that the healthcare sector is stable across past business cycles. If anything, when areas experience more severe local economic downturns, healthcare employment increases. Much remains unknown about the adjustments and lasting impacts for the healthcare sector associated with the COVID era. Our study represents an important backdrop as policy makers consider ways to sustain the healthcare sector during economic and public health turbulence.

Suggested Citation

  • Marcus Dillender & Andrew I. Friedson & Cong T. Gian & Kosali I. Simon, 2021. "Is Healthcare Employment Resilient and “Recession Proof”?," NBER Working Papers 29287, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29287
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    References listed on IDEAS

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    Cited by:

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    3. Alexander, Diane & Richards, Michael R., 2023. "Economic consequences of hospital closures," Journal of Public Economics, Elsevier, vol. 221(C).
    4. Johannes Geyer & Peter Haan & Mia Teschner, 2024. "The Impact of Macroeconomic Conditions on Long-Term Care: Evidence on Prices," Discussion Papers of DIW Berlin 2096, DIW Berlin, German Institute for Economic Research.

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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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