Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/339470 
Year of Publication: 
2024
Series/Report no.: 
IFS Working Papers No. 24/58
Publisher: 
The Institute for Fiscal Studies (IFS), London
Abstract: 
We estimate the impact of firm quality - primarily measured by firm productivity - on the health maintenance of employees. Using linked employer-employee administrative panel data from Hungary, we analyze the dynamics of healthcare use before and after moving to a new firm. We show that moving to a more productive firm leads to higher consumption of drugs for cardiovascular conditions and more physician visits, without evidence of deteriorating physical health, and, among older workers, to lower consumption of medications for mental health conditions. The results are robust to using alternative firm quality indicators based on firm-level wages and worker flows, and to controlling for firm size, individual wage and possible peer effects. The results suggest that more productive firms have a beneficial effect on the detection of previously undiagnosed chronic physical illnesses and on mental health. Plausible mechanisms include higher quality occupational health check-ups and less stressful working conditions.
Subjects: 
firm productivity
healthcare use
mover identification
preventive care
JEL: 
I10
J32
J62
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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