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Title:Income and Employment Effects of Health Shocks - A Test Case for the German Welfare State PDF Logo
Authors:Riphahn, Regina T.
Issue Date:1998
Series/Report no.:IZA Discussion paper series 10
Abstract:Using data from the first eleven waves of the German Socio-Economic Panel this study investigates the dynamic effects of health shocks on employment and economic wellbeing of older workers. A health shock trebles the probability of leaving the labor force and almost doubles the unemployment risk. The financial effects of health shocks are small on average and those individuals with the highest remaining earnings potential are least affected by the health shock. Welfare state instruments support the poorest section of the population but do not succeed in neutralizing the effects of a health shock for these groups.
Subjects:health
labor force participation
earnings
welfare state
JEL:J28
J21
I10
J26
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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