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Losing heart? : the effect of job displacement on health

Black, Sandra E.; Devereux, Paul J.; Salvanes, Kjell Gunnar
Working paper
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URI
http://hdl.handle.net/11250/163426
Date
2012-12
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  • Discussion papers (SAM) [578]
Abstract
Job reallocation is considered to be a key characteristic of well-functioning labor markets, as

more productive firms grow and less productive ones contract or close. However, despite its

potential benefits for the economy, there are significant costs that are borne by displaced

workers. We study how job displacement in Norway affects cardiovascular health using a

sample of men and women who are predominantly aged in their early forties. To do so we

merge survey data on health and health behaviors with register data on person and firm

characteristics. We track the health of displaced and non-displaced workers from 5 years

before to 7 years after displacement. We find that job displacement has a negative effect on

the health of both men and women. Importantly, much of this effect is driven by an increase

in smoking behavior. These results are robust to a variety of specification checks.
Publisher
Norwegian School of Economics, Department of Economics
Series
Discussion paper;26/2012

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