Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/115063
Authors: 
Halla, Martin
Zweimüller, Martina
Year of Publication: 
2011
Series/Report no.: 
NRN Working Paper, NRN: The Austrian Center for Labor Economics and the Analysis of the Welfare State 1103
Abstract: 
This paper interprets accidents occurring on the way to and from work as negative health shocks to identify the causal effect of health on labor market outcomes. We argue that in our sample of exactly matched treated and control workers, these health shocks are quasi-randomly assigned. A fixed-effects difference-in-differences approach estimates a negative and persistent effect on subsequent employment and income. After initial periods with a higher incidence of sick leave, treated workers are more likely unemployed, and a growing share of them leaves the labor market via disability retirement. Those treated workers, who manage to stay in employment, incur persistent income losses. The effects are stronger for sub-groups of workers who are typically less attached to the labor market.
Subjects: 
Health
employment
income
JEL: 
I10
J22
D31
J31
J24
J26
J64
J28
Document Type: 
Working Paper

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