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The Long-term Effects of Finland’s Recession of the 1990s on Mortality

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  • Maczulskij, Terhi

Abstract

Job loss is one of the most significant negative shocks experienced by an individual. Job loss can lead to financial strain, poor health and increased social problems. Previous studies have also found that job loss increases the risk of all-cause mortality. This ETLA brief presents the findings of a study that examines the long-term effects of job loss on mortality, using extensive register data up to 2020. Job losses are measured by plant closures and mass layoffs that occurred during the Finnish recession of the 1990s. The results show that displaced workers have a 10–20% higher mortality risk compared to non-displaced workers. These effects are still evident 30 years later. Job loss increased the long-term risks for mortality from ischemic heart diseases, infectious, parasitic, or respiratory diseases and cancer. However, the most pronounced effects were observed in alcohol-related deaths, suicide, accidents and violence. These findings highlight the need for interventions and preventive measures to support the health of individuals affected by job loss and to reduce their risk of premature mortality. See also Academic Publication.

Suggested Citation

  • Maczulskij, Terhi, 2025. "The Long-term Effects of Finland’s Recession of the 1990s on Mortality," ETLA Brief 156, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:briefs:156
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    File URL: https://www.etla.fi/wp-content/uploads/ETLA-Muistio-Brief-156.pdf
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    More about this item

    Keywords

    Job loss; Recession; All-cause mortality; Specific-cause mortality;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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