This paper examines the relationship between health and unemployment on individual panel data for the Czech Republic between 2008 and 2011. Foreign research comes up with two possible directions: that unemployment worsens health and that for people with poor health it is more difficult to find jobs, the healthy worker effect. In many models based on representative data from the European Union Statistics on Income and Living Conditions, it has been verified that unemployment actually worsens health. Conversely, healthy worker effect could not be verified. Finally, it was found that the relationship from unemployment to poorer health is greater among men than women.
Keywords:Unemployment, health, Czech Republic, healthy worker effect, gender, self-reported health, labor market.
JEL Classification: J64, J70, I10
Authors:DOMINIK STROUKAL, Department of Economics, University of Economics, Česká republika, Email: dominikstroukal@gmail.com Citation: Sciences, Vol. V(2), pp. 55-68., 10.20472/ES.2016.5.2.004 55 Copyright © 2016, DOMINIK STROUKAL, dominikstroukal@gmail.com
DOMINIK STROUKAL (2016). A longitudinal analysis of the effect of unemployment on health. International Journal of Economic
IntroductionThe relationship between unemployment and health is well documented. It has been shown that employed people are healthier (Ross & Mirowsky, 1995) and a positive relationship has been discovered between employment and good health -both mental health (Cai & Kalb, 2006) and physical health (Ahs & Westerling, 2006). Conversely, unemployed people are of worse health (Dooley, Fielding, & Levi, 1996). An extensive summary is put forth by Marmont a Wilkinson (2006).Longitudinal research makes for a significant progress in uncovering the relationship between unemployment and health. Groundbreakers include for example Berkman (1984), who demonstrates the relationship between unemployment and premature death, Aneshensel (1985) for depressions, or generally between unemployment and health shown on longitudinal data by Bolton and Oatley (1987) or Frese and Mohr (1987). Montgomery et al. (1999), for example, showed that newly-unemployed people face more than two times higher a risk of depression as opposed to employed people. The same results were obtained even after discarding people who suffered from depression before an employment status change. Recent studies by Diette et al. (2012) or Binder and Coad (2014) show the negative relationship between transition into unemployment on wellbeing even though the later study shows that the effect on a comprehensive well-being variable is smaller than on typical life satisfaction variables. This paper continues in this line of work and puts forth a longitudinal analysis of the relationship between unemployment and health for the Czech Republic. The present analysis is based on subjectively measured self-reported health.Longitudinal research is crucial for determining the relationship between unemployment and health. With short-run research, it is very difficult to tell if ...