RT Journal Article
SR Electronic
T1 Missing Work Is a Pain
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 71
OP 122
DO 10.3368/jhr.53.1.0215-6958R1
VO 53
IS 1
A1 Aline Bütikofer
A1 Meghan M. Skira
YR 2018
UL http://jhr.uwpress.org/content/53/1/71.abstract
AB How does medical innovation affect labor supply? We analyze how the availability of Cox-2 inhibitors, pharmaceuticals used for treating pain and inflammation, affected the sickness absence and disability pension receipt of individuals with joint pain. We exploit the market entry of the Cox-2 inhibitor Vioxx and its sudden market withdrawal as exogenous sources of variation in drug use. Using Norwegian administrative data, we find Vioxx’s entry decreased quarterly sickness absence days among individuals with joint pain by 7–12 percent. The withdrawal increased sickness days by 12–16 percent and increased the quarterly probability of receiving disability benefits by 6–15 percent.