The causal impact of health status on labour market outcomes: consequences for individuals and households

The causal impact of health status on labour market outcomes: consequences for individuals and households research project is funded by The Health Foundation and part of The social and economic value of health programme.

The project aims to estimate the causal impact of health on labour market outcomes, such as employment, hours of work, wages and absenteeism. It will also explore how differences (for example by gender, age, job type and household composition) can affect the relationship between health and work outcomes. The research will inform policy aimed at reducing the ‘disability employment gap’.

 

 

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Project summary

For people of working age, work (or lack of work) is important in determining their current and future wellbeing; and there is a clear two-way relationship between health and work.

The focus of this project is on health and how it is an important determinant of someone’s ability to work, affecting an individual’s chances of gaining employment, ‘good work’, and adequate reward. Using longitudinal data and econometric techniques we aim to estimate the causal impact of health on employment outcomes.

This is an important issue for the UK economy. Work is a key route to financial security and wellbeing, but chronic health problems are increasing among the working age population, and health is often the catalyst for poor labour market outcomes or unemployment. This has implications that extend beyond individual and households to effects on firm performance, productivity levels and economic growth.

The project will engage with employers and other stakeholders including the government's Work and Health Unit to ensure its policy relevance.

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Photo of a warehouse worker

Business people at work Photo of a pub worker

The project will aim to answer the following questions:

  • Q1: establish the role of physical and mental health in determining individual labour outcomes such as employment, work hours and wages.
  • Q2: explore the influence of health problems on employer relevant work outcomes, like productivity and absenteeism; this is key to engaging employers in this debate.
  • Q3: document heterogeneity in the health/work relationship (e.g. by age, job/contract type, health condition and household type), in order to understand the effects across different groups.
  • Q4: consider spillover effects to and from other household members.
  • Q5: consider the role of institutions in shaping the labour market response to changes in health, and explore the underlying causal mechanisms.

Read more about the project on The Health Foundation website

The research project team

Jenny RobertsJennifer Roberts

Professor of Economics

Tel: +44 (0)114 2223403
Email: j.r.roberts@sheffield.ac.uk

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Photo of Dr Mark BryanMark Bryan

Reader in Economics

Tel: +44 (0)114 222 3457
Email: m.l.bryan@sheffield.ac.uk

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Photo of Nigel RiceNigel Rice

Professor of Economics

University of York

Email: nigel.rice@york.ac.uk

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Photo of Maarten LindeboomMaarten Lindeboom

Professor of Economics

Vrije Universiteit Amsterdam

Email: m.lindeboom@vu.nl

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Cristina SechelCristina Sechel

Research Associate

Tel: +44 (0)114 222 6105
Email: c.sechel@sheffield.ac.uk

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