We use matching combined with difference-in-differences to identify the causal effects of sudden illness, represented by acute hospitalizations, on employment and income up to six years after the health shock using linked Dutch hospital and tax register data. An acute hospital admission lowers the employment probability by seven percentage points and results in a five percent loss of personal income two years after the shock. There is no subsequent recovery in either employment or income. There are large spillover effects: household income falls by 50 percent more than the income of the disabled person.

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International studies have shown evidence on inequity in use of health services of different kinds, depending on the type of health care service analysed. However, equity in the access to long-term care (LTC) services has received much less attention. We investigate the determinants of several LTC services and the existence of unmet need by the disabled population using unique data from a survey conducted on the disabled population in Spain in 2008. We further measure the level of horizontal inequity using methods based on the Concentration Index, a widely used indicator of income-related inequality in health. At the time of the analysis, only those respondents with the highest dependency level were covered by the recently introduced universal LTC system, which allows us to explore whether inequities remain for this subgroup of the population. In addition, we compare results using self-reported versus a more objective indicator of unmet needs. Evidence suggests that after controlling for a wide set of need variables, there is not an equitable distribution of use and unmet need of LTC services in Spain, with socioeconomic status being an important factor in access to LTC. We find that individuals at the higher end of the income distribution utilize a relatively larger share of formal services (provided by a professional), while intensive informal care (provided by friends and family) is concentrated among the worst-off. In terms of unmet needs for LTC services, their distribution depends on the service considered as well as on whether we focus on subjective or objective measures. Interestingly, for the population covered by the new universal LTC system, inequities in most LTC services and unmet needs remain statistically significant and even increase for certain services, in particular, formal services provided by professionals. JEL classification codes: I14, 138, J14

We use matching combined with difference-in-differences to identify the causal effects of sudden illness, represented by acute hospitalizations, on employment and income up to six years after the health shock using linked Dutch hospital and tax register data. An acute hospital admission lowers the employment probability by seven percentage points and results in a five percent loss of personal income two years after the shock. There is no subsequent recovery in either employment or income. There are large spillover effects: household income falls by 50 percent more than the income of the disabled person.

Informal care is today the form of support most commonly used in Spain by those who need help in order to carry out basic daily activities. The potential labour opportunity costs incurred by Spanish informal carers have not as yet been quantified. In this paper we use the Spanish subsample of the European Community Household Panel (1994)(1995)(1996)(1997)(1998)(1999)(2000)(2001) to estimate an econometric model which we exploit to examine the effects of various types of informal care on labour market outcomes. Our results reveal the existence of non-negligible costs in terms of foregone employment for carers who live with the dependent person and/or provide more than 28 h of care/week. We also find that providing care for more than a year has negative effects on employment. Nonetheless, there seems to be no contemporaneous employment effects associated to either starting or ending an episode of care.

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Disability has always been an important social welfare program in developed countries and Spain is not an exception. The program represented an average of 1.5 percent of the gross national product (GDP) in the 1995 to 2010 period, slightly below the European Union (EU) average of 2.2 percent of the GDP. The relative importance of the program with respect to the pension program has varied in the last twenty to twenty-fi ve years. In 1977 the ratio of disability to retirement benefi ts was 0.44, in 1985, by the end of the crisis of the early 1980s, it reached a maximum of 0.58 and it has slowly decreased since then. By 1997 the ratio was again down to 0.45. Figures from 1998 are difficult to compare as all disability pensions from age 65-plus were, since that year, converted to retirement benefi ts, but back-of-the-envelope calculations suggest that the ratio decreased in the early 2000s and increased from 2008 onward because of the recent crisis. 1