Working Paper: NBER ID: w18660
Authors: Sandra E. Black; Paul J. Devereux; Kjell G. Salvanes
Abstract: Job reallocation is considered to be a key characteristic of well-functioning labor markets, as more productive firms grow and less productive ones contract or close. However, despite its potential benefits for the economy, there are significant costs that are borne by displaced workers. We study how job displacement in Norway affects cardiovascular health using a sample of men and women who are predominantly aged in their early forties. To do so we merge survey data on health and health behaviors with register data on person and firm characteristics. We track the health of displaced and non-displaced workers from 5 years before to 7 years after displacement. We find that job displacement has a negative effect on the health of both men and women. Importantly, much of this effect is driven by an increase in smoking behavior. These results are robust to a variety of specification checks.
Keywords: job displacement; health; cardiovascular health; smoking behavior
JEL Codes: I10; J63
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| job displacement (J63) | health of displaced workers (J28) |
| job displacement (J63) | increase in smoking behavior (I12) |
| increase in smoking behavior (I12) | health of displaced workers (J28) |
| job displacement (J63) | cholesterol levels among displaced women (I14) |
| job displacement (J63) | blood pressure for either gender (J16) |
| displacement of workers in downsizing firms (J63) | negative health impacts (I12) |
| displacement of workers with plant closures (J65) | negative health effects (I12) |