RT Journal Article
SR Electronic
T1 Long-Term and Spillover Effects of Health Shocks on Employment and Income
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 873
OP 909
DO 10.3368/jhr.48.4.873
VO 48
IS 4
A1 García-Gómez, Pilar
A1 van Kippersluis, Hans
A1 O’Donnell, Owen
A1 van Doorslaer, Eddy
YR 2013
UL http://jhr.uwpress.org/content/48/4/873.abstract
AB 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.