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Chronic health conditions and their impact on the labor market. A cross-country comparison in Europe.

Boris Polanco · Ana Oña · Carla Sabariego · Diana Pacheco Barzallo

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Retirement, Disability, and Employment Health Systems, Economic Evaluations, Quality of Life Chronic Disease Management Strategies

Abstract

Objectives: To estimate the effect of having a chronic disease on the weekly working hours and the associated monetary losses. Design: Longitudinal data Survey of Health, Aging and Retirement (SHARE) in Europe. We analyzed 7 waves from 9 countries in Europe. A total of 80.672 observations. Setting: Participants who have their regular domicile in the respective SHARE country were interviewed face-to-face. Participants: Data from individuals aged between 50 and 65 years old in European countries were collected over seven years. A person was excluded from the survey if incarcerated, hospitalized or out of the country during the entire survey period, unable to speak the country's language(s) or moved to an unknown address. Interventions: Not applicable. Main outcome measurements: We applied a difference-in-differences with multiple time periods approach to estimate the effect of having a chronic condition on the number of working hours per week. We monetized the estimated productivity losses using the legal minimum wage in each country. Results: Persons with a chronic condition consistently reduced their weekly working hours compared to their healthy counterparts in the same country. This effect was more pronounced for men (6,78 hours per week or 352 hours per year) than women (3,97 hours per week or 206 hours per year). Persons with stroke, vascular, and lung disease showed the highest impact. On average, the reduced working hours represent about USD 12,80 billion annually in productivity losses in our sample. Conclusion: Having a chronic condition leads to people decreasing their working hours, which has significant economic losses. More severe health conditions showed the highest effects. This trend is observed in all the analyzed countries, highlighting the relevance of health and social systems to go beyond mortality and morbidity and the need to incorporate functioning in their target goals.

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References

1974The Demand for Health: A Theoretical and Empirical Investigation.1985The Early Retirement Decision: New Empirical Evidence on the Influence of Health 1975The Impact of Poor Health on Earnings 2020Live longer, retire later? Developments of healthy life expectancies and working life expectancies between age 50–59 and age 60–69 in Europe 2018Mapping European Welfare Models: State of the Art of Strategies for Professional Integration and Reintegration of Persons with Chronic Diseases 2016Labor Force Participation of Women in the EU – What Role do Family Policies Play?2007Do the sick retire early? Chronic illness, asset accumulation and early retirement 2022The effect of disability on educational, labor market, and marital outcomes in a low-income context

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