LOSING HEART? THE EFFECT OF JOB DISPLACEMENT ON HEALTH

Job reallocation is considered a key characteristic of well-functioning labor markets, as more productive firms grow and less productive ones contract or close. Despite its potential benefits for the economy, however, costs that are borne by the displaced workers are significant. The authors study h...

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Bibliographic Details
Published in:Industrial & labor relations review 2015-08, Vol.68 (4), p.833-861
Main Authors: BLACK, SANDRA E., DEVEREUX, PAUL J., SALVANES, KJELL G.
Format: Article
Language:English
Subjects:
Behavior
Comparative analysis
Displaced workers
Health behavior
Labor market
Labor relations
Labour market
Markets
Norway
Occupational health
Relocating personnel
Smoking
Specification
Unemployment
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Summary:Job reallocation is considered a key characteristic of well-functioning labor markets, as more productive firms grow and less productive ones contract or close. Despite its potential benefits for the economy, however, costs that are borne by the displaced workers are significant. The authors study how job displacement in Norway affects cardiovascular health, using a sample of men and women who are predominantly in their early 40s. To do so, they merge survey data on health and health behaviors with register data on person and firm characteristics. The authors compare the health of displaced and non-displaced workers from five years before to seven years after displacement. Results show that job displacement leads to an increase in smoking behavior for both men and women but few other short-term health effects. These results are robust to a variety of specification checks.
ISSN:0019-7939
2162-271X
DOI:10.1177/0019793915586381