Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267153 
Year of Publication: 
2021
Series/Report no.: 
ISER Working Paper Series No. 2021-10
Publisher: 
University of Essex, Institute for Social and Economic Research (ISER), Colchester
Abstract: 
Biological processes have provided new insights into diverging labour market trajectories. This paper uses population variation in testosterone levels to explain transition probabilities into and out of unemployment. We examine labour market transitions for 2,004 initially employed and 111 initially unemployed British men from the UK Household Longitudinal Study ("Understanding Society") between 2009 and 2015. We address the endogeneity of testosterone levels by using genetic variation as instrumental variables (Mendelian Randomization). We find that for both initially unemployed men as well as initially employed men, higher testosterone levels reduce the risk of unemployment. Based on previous studies and descriptive evidence, we argue that these effects are likely driven by differences in cognitive and non-cognitive skills as well as job search behaviour of men with higher testosterone levels. Our findings suggest that latent biological processes can affect job search behaviour and labour market outcomes without necessarily relating to illness and disability.
Subjects: 
labour market dynamics
unemployment
testosterone
JEL: 
I10
J64
C23
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.