The effect of a severe health shock on work behavior: Evidence from different health care regimes

Gupta, Nabanita Datta; Kleinjans, Kristin J.; Larsen, Mona

doi:10.1016/j.socscimed.2015.05.008

Cited by 39 publications

(23 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…wave t, t − 1or t − 2). Smith (2004) and Datta Gupta et al (2011) identify severely ill people in a similar way. We define the second group of households to have a 'minor health condition' if neither the key person nor the partner are severely ill, but at least one of them is admitted to the hospital during the last three waves.…”

Section: Lmr and Cakmentioning

confidence: 91%

Saving Behavior and Portfolio Choice After Retirement

2015

View full text Add to dashboard Cite

This paper reviews the literature on saving behavior and portfolio choice after retirement and provides a descriptive analysis of this behavior by Dutch elderly households. Studying saving behavior in the Netherlands is informative because of the very different institutional background compared to the US, for which most of the empirical evidence is. In the Netherlands, the generous pension system and almost complete coverage of the public health-and long-term care insurance system makes precautionary saving less necessary. Using detailed administrative data, we present evidence on the extent to which the financial resources of retirees are affected by shocks such as the decease of a spouse or deteriorating health-similar to recent empirical studies by Poterba et al. ( 2014) for the US. Moreover, we examine the extent to which retirees who do not experience any shocks are able to keep positive wealth at their disposal and sustain their consumption level during retirement. Our results show that the death of the spouse results in a significant reduction of household wealth compared to surviving couples-which is also found in the USwhile health shocks result in higher household savings in old-age due to the almost complete coverage of health care expenditures. Although retirees in the Netherlands face limited uncertainty about health expenditures, our analysis shows that the elderly, on average, keep large amounts of assets even at a very old age. Our findings suggest that (1) the generous pension benefits are protective of household wealth, (2) illiquid housing wealth constrains the decumulation of household wealth, (3) bequests and transfers after the death of the first spouse are important.

show abstract

Section: Lmr and Cakmentioning

confidence: 91%

Saving Behavior and Portfolio Choice After Retirement

2015

View full text Add to dashboard Cite

show abstract

“…Estimating meaningful effects of the impact of health on labour supply is, however, complex: issues such as health and economic activity being jointly determined, unobserved preferences, justification bias in survey self-reports of health status, and health-related selection into employment are typically difficult to overcome. An additional challenge is that the design and operation of pension, social benefit and welfare systems, as well as the structure of the labour market and the organisation of health and social care services all contribute to shaping labour supply decisions in response to a significant change to health (Garcia Gomez, 2011, Cai et al, 2014, Datta Gupta et al, 2011. This is particularly pertinent given the profound impact the recent recession has imparted on the structure of labour markets (Immervol et al, 2011, Jenkins et al, 2012, Elsby et al, 2011, 2016 and the fiscal policy response leading to significant changes in welfare provision.…”

Section: Introductionmentioning

confidence: 99%

Acute Health Shocks and Labour Market Outcomes

2016

View full text Add to dashboard Cite

We investigate the labour supply response to acute health shocks experienced in the postcrash labour market by individuals of working age, using data from Understanding Society. Identification exploits uncertainty in the timing of an acute health shock, defined by the incidence of cancer, stroke, or heart attack. Results, obtained through a combination of coarsened exact and propensity score matching, show acute health shocks significantly reduce participation, with younger workers displaying stronger labour market attachment. The impact on older, more educated, women suggests an important role for preferences, financial constraints, and intra-household division of labour determining labour supply decisions.

show abstract

“…Datta Gupta et al (2015) shows that older men (between 55 and 64 years of age) diagnosed with cancer are 9.8 percentage points more likely to not work than non-cancer survivors two years after diagnosis. Bradley et al (2005) and Bradley et al (2007) show that older men (with a mean age of 56) who have been diagnosed with prostate cancer are 10 percentage points less likely to work in the 6 months following prostate cancer diagnosis than healthy controls.…”

Section: Related Literaturementioning

confidence: 99%

The effect of cancer on the labor supply of employed men over the age of 65

Candon

2018

Economics & Human Biology

View full text Add to dashboard Cite

This paper investigates the relationship between cancer diagnosis and the labor supply of employed men over the age of 65. While almost 60% of male cancers are diagnosed in men over the age of 65, no previous research has examined the effect that cancer has on this age group, which is surprising given the relevance of this group to public policy. With data from the Health and Retirement Study, I show that cancer has a significant negative effect on the labor supply of these workers. Using a combination of linear regression models and propensity score matching, I find that respondents who are diagnosed with cancer work 3 fewer hours per week than their non-cancer counterparts. They are also 10 percentage points more likely to stop working. This reduction seems to be driven by a deterioration in physical and mental health.

show abstract

The effect of a severe health shock on work behavior: Evidence from different health care regimes

Cited by 39 publications

References 31 publications

Saving Behavior and Portfolio Choice After Retirement

Saving Behavior and Portfolio Choice After Retirement

Acute Health Shocks and Labour Market Outcomes

The effect of cancer on the labor supply of employed men over the age of 65

Contact Info

Product

Resources

About