Health shocks and couples' labor supply decisions
By: Courtney C. Coile.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10810; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10810.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Older people -- Medical care -- Costs.; Married people -- Employment.; Medical care, Cost of.; Medical economics.
Description: "Unexpected health events such as a heart attack or new cancer diagnosis are very common for workers in their 50s and 60s.  These health shocks can result in a significant loss in family income if the worker reduces labor supply, but the family can also protect itself against this loss if the worker's spouse increases labor supply, generating an "added worker effect." In this paper, I examine the effect of health shocks on the labor supply of both spouses using the Health and Retirement Study (HRS).  I find that shocks lead the affected worker to reduce labor supply dramatically, particularly if the shock is accompanied by a loss of functioning.  I also find that the added worker effect is small for men and that there is no such effect for women.  There is some evidence to suggest that families respond to health shocks in predictable ways depending on characteristics such as access to retiree health insurance.  The study concludes that health shocks result in real financial losses for families and are an important source of financial risk for older households"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/7/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.