Advertisement

Impact of unemployment on self-perceived health

Evidence from French panel data
  • Jérôme Ronchetti
  • Anthony TerriauEmail author
Original Paper

Abstract

This article investigates the impact of unemployment on self-perceived health using the French Longitudinal Labour Force Survey over the period 2013–2016. We apply a difference-in-difference propensity score matching approach to identify the health effect of unemployment. By combining both methods, we minimise selection bias and remove unobserved individual fixed effects that are time-invariant as well as common period effects. In the French context, characterised by high and persistent unemployment and relatively long unemployment spells, we show that the experience of unemployment has no significant effect on self-perceived health. Moreover, we find no heterogenous effect by carrying out separate analyses by age, gender, marital status, education, occupation, employment contract, local unemployment rate, or past labour market history. Robustness checks, performed by testing alternative types of matching technology, different definitions of the unemployment experience, and other measures of health confirm our findings. Health selection and confounding factors appear to be important determinants of the cross-sectional association between unemployment and poor health.

Keywords

Unemployment Self-perceived health Panel data Difference-in-differences Propensity score matching 

JEL Classification

C10 C23 I10 I12 J01 

Notes

References

  1. 1.
    Austin, P.C.: Optimal caliper widths for propensity-score matching when estimating differences in means and differences in proportions in observational studies. Pharm. Stat. 10(2), 150–161 (2011)Google Scholar
  2. 2.
    Barnay, T., Defebvre, É.: L’influence de la santé mentale déclarée sur le maintien en emploi. Économie et statistique 486(1), 45–78 (2016)Google Scholar
  3. 3.
    Blasco, S., Brodaty, T.: Chômage et santé mentale en france. Économie et statistique 486(1), 17–44 (2016)Google Scholar
  4. 4.
    Böckerman, P., Ilmakunnas, P.: Unemployment and self-assessed health: evidence from panel data. Health Econ. 18(2), 161–179 (2009)Google Scholar
  5. 5.
    Browning, M., Moller Dano, A., Heinesen, E.: Job displacement and stress-related health outcomes. Health Econ. 15(10), 1061–1075 (2006)Google Scholar
  6. 6.
    Caliendo, M., Kopeinig, S.: Some practical guidance for the implementation of propensity score matching. J. Econ. Surv. 22(1), 31–72 (2008)Google Scholar
  7. 7.
    Clark, A.E.: Unemployment as a social norm: psychological evidence from panel data. J. Labor Econ. 21(2), 323–351 (2003)Google Scholar
  8. 8.
    Claussen, B.: A clinical follow up of unemployed: lifestyle, diagnoses, treatment and re-employment. Scand. J. Primary Health Care 11(3), 211–218 (1993)Google Scholar
  9. 9.
    Dehejia, R.H., Wahba, S.: Propensity score-matching methods for nonexperimental causal studies. Rev. Econ. Stat. 84(1), 151–161 (2002)Google Scholar
  10. 10.
    Dupre, M.E., George, L.K., Liu, G., Peterson, E.D.: The cumulative effect of unemployment on risks for acute myocardial infarction. Arch. Int. Med. 172(22), 1731–1737 (2012)Google Scholar
  11. 11.
    Franks, P., Gold, M.R., Fiscella, K.: Sociodemographics, self-rated health, and mortality in the us. Soc. Sci. Med. 56(12), 2505–2514 (2003)Google Scholar
  12. 12.
    Frijters, P., Haisken-DeNew, J.P., Shields, M.A.: The causal effect of income on health: evidence from german reunification. J. Health Econ. 24(5), 997–1017 (2005)Google Scholar
  13. 13.
    Gebel, M., Voßemer, J.: The impact of employment transitions on health in germany, a difference-in-differences propensity score matching approach. Soc. Sci. Med. 108, 128–136 (2014)Google Scholar
  14. 14.
    Gerdtham, U.G., Ruhm, C.J.: Deaths rise in good economic times: evidence from the oecd. Econ. Hum. Biol. 4(3), 298–316 (2006)Google Scholar
  15. 15.
    Haan, P., Myck, M.: Dynamics of health and labor market risks. J. Health Econ. 28(6), 1116–1125 (2009)Google Scholar
  16. 16.
    Heckman, J.J., Ichimura, H., Todd, P.: Matching as an econometric evaluation estimator. Rev. Econ. Stud. 65(2), 261–294 (1998)Google Scholar
  17. 17.
    Heckman, J.J., Ichimura, H., Todd, P.E.: Matching as an econometric evaluation estimator: evidence from evaluating a job training program. Rev. Econ. Stud. 64(4), 605–654 (1997)Google Scholar
  18. 18.
    Heckman, J.J., LaLonde, R.J., Smith, J.A.: The economics and econometrics of active labor market programs. In: Handbook of labor economics, vol. 3, Elsevier, Amsterdam, pp. 1865–2097 (1999)Google Scholar
  19. 19.
    Idler, E.L., Benyamini, Y.: Self-rated health and mortality: a review of twenty-seven community studies. J. Health Soc. Behav. pp. 21–37 (1997)Google Scholar
  20. 20.
    Imbens, G.W., Wooldridge, J.M.: Recent developments in the econometrics of program evaluation. J. Econ. Liter. 47(1), 5–86 (2009)Google Scholar
  21. 21.
    Jones, A.M., Schurer, S.: How does heterogeneity shape the socioeconomic gradient in health satisfaction? J. Appl. Econ. 26(4), 549–579 (2011)Google Scholar
  22. 22.
    Jusot, F., Khlat, M., Rochereau, T., Serme, C.: Job loss from poor health, smoking and obesity: a national prospective survey in france. J. Epidemiol. Commun. Health 62(4), 332–337 (2008)Google Scholar
  23. 23.
    Lechner, M.: Program heterogeneity and propensity score matching: an application to the evaluation of active labor market policies. Rev. Econ. Stat. 84(2), 205–220 (2002)Google Scholar
  24. 24.
    Lee, A.J., Crombie, I.K., Smith, W.C., Tunstall-Pedoe, H.D.: Cigarette smoking and employment status. Soc. Sci. Med. 33(11), 1309–1312 (1991)Google Scholar
  25. 25.
    Linn, M.W., Sandifer, R., Stein, S.: Effects of unemployment on mental and physical health. Am. J. Public Health 75(5), 502–506 (1985)Google Scholar
  26. 26.
    Meneton, P., Kesse-Guyot, E., Méjean, C., Fezeu, L., Galan, P., Hercberg, S., Ménard, J.: Unemployment is associated with high cardiovascular event rate and increased all-cause mortality in middle-aged socially privileged individuals. Int. Arch. Occup. Environ. Health 88(6), 707–716 (2015)Google Scholar
  27. 27.
    Osipow, S.H., Fitzgerald, L.F.: Unemployment and mental health: a neglected relationship. Appl. Prevent. Psychol. 2(2), 59–63 (1993)Google Scholar
  28. 28.
    Peck, D.F., Plant, M.A.: Unemployment and illegal drug use: concordant evidence from a prospective study and national trends. Br. Med. J. (Clin. Res. Ed.) 293(6552), 929–932 (1986)Google Scholar
  29. 29.
    Rosenbaum, P.R., Rubin, D.B.: The central role of the propensity score in observational studies for causal effects. Biometrika 70(1), 41–55 (1983)Google Scholar
  30. 30.
    Rosenbaum, P.R., Rubin, D.B.: Constructing a control group using multivariate matched sampling methods that incorporate the propensity score. Am. Stat. 39(1), 33–38 (1985)Google Scholar
  31. 31.
    Roy, A.D.: Some thoughts on the distribution of earnings. Oxf. Econ. Pap. 3(2), 135–146 (1951)Google Scholar
  32. 32.
    Rubin, D.B.: Estimating causal effects of treatments in randomized and nonrandomized studies. J. Educ. Psychol. 66(5), 688 (1974)Google Scholar
  33. 33.
    Ruhm, C.J.: Healthy living in hard times. J. Health Econ. 24(2), 341–363 (2005)Google Scholar
  34. 34.
    Salm, M.: Does job loss cause ill health? Health Econ. 18(9), 1075–1089 (2009)Google Scholar
  35. 35.
    Schmitz, H.: Why are the unemployed in worse health? The causal effect of unemployment on health. Lab. Econ. 18(1), 71–78 (2011)Google Scholar
  36. 36.
    Stuckler, D., Basu, S., Suhrcke, M., Coutts, A., McKee, M.: The public health effect of economic crises and alternative policy responses in Europe: an empirical analysis. The Lancet 374(9686), 315–323 (2009)Google Scholar
  37. 37.
    Theodossiou, I.: The effects of low-pay and unemployment on psychological well-being: a logistic regression approach. J. Health Econ. 17(1), 85–104 (1998)Google Scholar
  38. 38.
    Van Doorslaer, E., Jones, A.M.: Inequalities in self-reported health: validation of a new approach to measurement. J. Health Econ. 22(1), 61–87 (2003)Google Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  1. 1.GAINS - University of Le MansLe MansFrance
  2. 2.GATE - University of Lyon IIÉcullyFrance

Personalised recommendations