We investigate how labour market institutions shape the labour response to acute cardiovascular shocks in a highly regulated labour market over the long run. Using Italian administrative data that covers the history of employment, social security and hospitalization of workers, we exploit several identification strategies to remove bias from observable and unobservable confounders. Significant reductions in employment and labour income emerge in the short run and persist over time, with no evidence of re-entry in the longer run. No adjustment is detected in working hours or wages for those who maintain employment. While the Disability Insurance (DI) system contributes to insure workers against the consequences of health shocks, we offer new evidence on the value of employment protective institutions in strengthening unhealthy workers‘ labour inclusion, in particular for blue-collar workers.

Labour Market Institutions and Long Term Adjustments to Health Shocks: Evidence from Italian Administrative Records

Irene Simonetti;Michele Belloni;Francesca Zantomio
2022-01-01

Abstract

We investigate how labour market institutions shape the labour response to acute cardiovascular shocks in a highly regulated labour market over the long run. Using Italian administrative data that covers the history of employment, social security and hospitalization of workers, we exploit several identification strategies to remove bias from observable and unobservable confounders. Significant reductions in employment and labour income emerge in the short run and persist over time, with no evidence of re-entry in the longer run. No adjustment is detected in working hours or wages for those who maintain employment. While the Disability Insurance (DI) system contributes to insure workers against the consequences of health shocks, we offer new evidence on the value of employment protective institutions in strengthening unhealthy workers‘ labour inclusion, in particular for blue-collar workers.
2022
79
File in questo prodotto:
File Dimensione Formato  
1-s2.0-S0927537122001671-main.pdf

non disponibili

Tipologia: Documento in Pre-print
Licenza: Accesso chiuso-personale
Dimensione 2.19 MB
Formato Adobe PDF
2.19 MB Adobe PDF   Visualizza/Apri

I documenti in ARCA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/5005041
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 3
  • ???jsp.display-item.citation.isi??? 2
social impact