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Research ArticleArticles

Long-Term and Spillover Effects of Health Shocks on Employment and Income

Pilar García-Gómez, Hans van Kippersluis, Owen O’Donnell and Eddy van Doorslaer
Journal of Human Resources, October 2013, 48 (4) 873-909; DOI: https://doi.org/10.3368/jhr.48.4.873
Pilar García-Gómez
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Hans van Kippersluis
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Owen O’Donnell
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Eddy van Doorslaer
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Abstract

We use matching combined with difference-in-differences to identify the causal effects of sudden illness, represented by acute hospitalizations, on employment and income up to six years after the health shock using linked Dutch hospital and tax register data. An acute hospital admission lowers the employment probability by seven percentage points and results in a 5 percent loss of personal income two years after the shock. There is no subsequent recovery in either employment or income. There are large spillover effects: Household income falls by 50 percent more than the income of the disabled person.

  • Received October 2011.
  • Accepted September 2012.
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Journal of Human Resources: 48 (4)
Journal of Human Resources
Vol. 48, Issue 4
2 Oct 2013
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Long-Term and Spillover Effects of Health Shocks on Employment and Income
Pilar García-Gómez, Hans van Kippersluis, Owen O’Donnell, Eddy van Doorslaer
Journal of Human Resources Oct 2013, 48 (4) 873-909; DOI: 10.3368/jhr.48.4.873

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Long-Term and Spillover Effects of Health Shocks on Employment and Income
Pilar García-Gómez, Hans van Kippersluis, Owen O’Donnell, Eddy van Doorslaer
Journal of Human Resources Oct 2013, 48 (4) 873-909; DOI: 10.3368/jhr.48.4.873
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  • Article
    • Abstract
    • I. Introduction
    • II. Institutional Context—Dutch Sickness, Disability, and Health Insurance
    • III. Data
    • IV. Empirical Strategy
    • V. Results
    • VI. Robustness Checks
    • VII. Conclusion
    • Appendix
    • Footnotes
    • References
  • Figures & Data
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  • References
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