The Effect of an Acute Health Shock on Work Behavior: Evidence from Different Health Care Regimes

47 Pages Posted: 17 Jul 2011

See all articles by Nabanita Datta Gupta

Nabanita Datta Gupta

Department of Economics and Business, Aarhus University; IZA Institute of Labor Economics

Kristin J. Kleinjans

California State University, Fullerton - Department of Economics

Mona Larsen

Danish National Centre for Social Research (SFI)

Abstract

We study how severe acute health shocks affect the probability of not working in the U. S. versus in Denmark. The results not only provide insight into how relative disease risk affects labor force participation at older ages, but also into how different types of health care and health insurance systems affect individual decisions of labor force participation. We find that the effect of an acute health shock on labor force participation is stronger in the U.S. than in Denmark, and provide compelling evidence that this is the result of health care system-related differential mortality and baseline health differences.

Keywords: health shock, health care regimes, work

JEL Classification: I12, I18, J26

Suggested Citation

Datta Gupta, Nabanita and Kleinjans, Kristin J. and Larsen, Mona, The Effect of an Acute Health Shock on Work Behavior: Evidence from Different Health Care Regimes. IZA Discussion Paper No. 5843, Available at SSRN: https://ssrn.com/abstract=1887529 or http://dx.doi.org/10.2139/ssrn.1887529

Nabanita Datta Gupta (Contact Author)

Department of Economics and Business, Aarhus University ( email )

Fuglesangs Allé 4
8210 Aarhus V
Denmark
+45 87165207 (Phone)

HOME PAGE: http://pure.au.dk/portal/da/ndg@econ.au.dk

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Kristin J. Kleinjans

California State University, Fullerton - Department of Economics ( email )

Fullerton, CA 92834
United States

HOME PAGE: http://https://business.fullerton.edu/faculty/kristin-kleinjans

Mona Larsen

Danish National Centre for Social Research (SFI) ( email )

Herluf Trolles Gade 11
DK-1052 Copenhagen
Denmark

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