Short summary:

The effect of job loss on health may explain part of the correlation between socio-economic conditions and health. The paper finds no evidence that business closures lead to worse health outcomes, but does find evidence that layoffs lead to diminished health. Accounting for self-reported health conditions prior to the layoff and subjective job loss expectations, it is estimated that a layoff could increase annual mortality rates by close to 10%.

Publication Authors: Pierre-Carl Michaud, Eileen Crimmins and Michael Hurd
Number: 14-02
Year: 2014