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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.
Abstract:
This paper estimates the effect of job loss on mortality for older male workers with a strong labor force attachment. Using Dutch administrative data, we find that job loss due to firm closure increased the probability of death within five years by a sizable 0.60 percentage points. Importantly, this effect is estimated using a model that controls for firm-level worker characteristics, such as lagged firm-level annual average mortality rates. On the mechanism driving the effect of job loss on mortality, we provide evidence for an effect running through stress and changes in life style.
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