Labor and health
The economics of labor and health examines the relationship between labor market outcomes and health status, as well as the economic implications of health on productivity, labor supply, and overall economic well-being. It offers a deeper understanding of how health status and healthcare considerations influence economic outcomes. It helps policymakers, employers, and individuals make informed decisions regarding workplace health programs, healthcare policies, and strategies that promote both individual well-being and economic prosperity.
For more articles on health-related topics also visit our related Subject area page or our Key topics page related to effects of the Covid-19 pandemic.
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Trans people, well-being, and labor market outcomes Updated
Transitioning across gender is related to greater life and job satisfaction but also affects acceptance in one’s society
Nick Drydakis, January 2024Acceptance of one’s gender identity and congruence between one’s gender identity and outward appearance are associated with less adverse mental health symptoms, and greater life and job satisfaction. However, trans people are subject to human rights violations, hate crimes, and experience higher unemployment and poverty than the general population. Trans people often feel that they are citizens who are not allowed to be themselves and practice their authentic identity. Many biased treatments of trans people could be attenuated if legal protections and inclusive workplace practices were in place.MoreLess -
Air pollution and worker productivity Updated
Higher levels of air pollution reduce worker productivity, even when air quality is generally low
Matthew NeidellNico Pestel, February 2023Environmental regulations are typically considered to be a drag on the economy. However, improved environmental quality may actually enhance productivity by creating a healthier workforce. Evidence suggests that improvements in air quality lead to improvements in worker productivity at the micro level across a range of sectors, including agriculture, manufacturing, and the service sectors, as well as at more aggregate macro levels. These effects also arise at levels of air quality that are below pollution thresholds in countries with the highest levels of environmental regulation. The findings suggest a new approach for understanding the consequences of environmental regulations.MoreLess -
The relationship between recessions and health Updated
Economic recessions seem to reduce overall mortality rates, but increase suicides and mental health problems
Nick Drydakis, December 2021Recessions are complex events that affect personal health and behavior via various potentially opposing mechanisms. While recessions are known to have negative effects on mental health and lead to an increase in suicides, it has been proven that they reduce mortality rates. A general health policy agenda in relation to recessions remains ambiguous due to the lack of consistency between different individual- and country-level approaches. However, aggregate regional patterns provide valuable information, and local social planners could use them to design region-specific policy responses to mitigate the negative health effects caused by recessions.MoreLess -
Early-life medical care and human capital accumulation Updated
Medical care and public health interventions in early childhood may improve human capital accumulation as well as child health
N. Meltem DaysalJonas Cuzulan Hirani, September 2021Ample empirical evidence links adverse conditions during early childhood (the period from conception to age five) to worse health outcomes and lower academic achievement in adulthood. Can early-life medical care and public health interventions ameliorate these effects? Recent research suggests that both types of interventions may benefit not only child health but also long-term educational outcomes. In some cases, the effects of interventions may spillover to other family members. These findings can be used to design policies that improve long-term outcomes and reduce economic inequality.MoreLess -
Alcoholism and mortality in Eastern Europe Updated
Excessive drinking is the main cause of high male mortality rates, but the problem can be addressed
Evgeny Yakovlev, August 2021Eastern European countries, particularly former Soviet Union economies, traditionally have the highest rates of alcohol consumption in the world. Consequently, they also have some of the highest male mortality rates in the world. Regulation can be effective in significantly decreasing excessive drinking and its related negative effects, such as low labor productivity and high rates of mortality. Understanding the consequences of specific regulatory measures and what tools should be used to combat excessive alcohol consumption is essential for designing effective policies.MoreLess -
Individual and family labor market impacts of chronic diseases
Chronic diseases worsen labor market outcomes, but firms’ hiring and retention policies can reduce them
Amanda Gaulke, January 2021Chronic health conditions are a global concern and can impact labor market outcomes of those diagnosed and their caregivers. Since the global prevalence of many chronic health conditions is on the rise, it is important to know what firms can do to retain and hire workers who are impacted. Firms can improve hiring by addressing biases against potential employees with chronic health conditions. Furthermore, firms can retain impacted workers by offering workplace flexibility such as partial sick leave, work hour flexibility, and part-time work options.MoreLess