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Job loss, firm-level heterogeneity and mortality: Evidence from administrative data
Hans Bloemen1, Stefan Hochguertel2, Jochem Zweerink3
1VU Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands; Tinbergen Institute, Gustav Mahlerplein 117, 1082 MS Amsterdam, The Netherlands; Netspar, Warandelaan 2, 5037 AB Tilburg, The Netherlands; IZA Bonn, Schaumburg-Lippe-Strasse 5-9, 53113 Bonn, Germany.
Job loss from firm closure significantly increases mortality risk for older male workers. This study highlights the impact of job loss on health outcomes, particularly through stress and lifestyle changes.
Area of Science:
- Economics
- Public Health
- Sociology
Background:
- Job loss is a significant life event with potential health consequences.
- Older male workers with strong labor force attachment may be particularly vulnerable to the health impacts of job loss.
Purpose of the Study:
- To estimate the causal effect of job loss on mortality among older male workers.
- To investigate the mechanisms through which job loss affects mortality.
Main Methods:
- Utilized Dutch administrative data for a cohort of older male workers.
- Employed an econometric model controlling for firm-level worker characteristics and mortality rates.
Main Results:
- Job loss due to firm closure increased the 5-year probability of death by 0.60 percentage points.
- Evidence suggests that stress and changes in lifestyle mediate the relationship between job loss and mortality.
Conclusions:
- Job loss, particularly due to firm closure, poses a substantial mortality risk for older male workers.
- Interventions addressing stress and promoting healthy lifestyles may mitigate the adverse health effects of job loss.
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