Scandinavian Working Papers in Economics
Umeå Economic Studies,
Umeå University, Department of Economics
No 967: Major health shocks and decisions about labour force participation amongst Mexican couples
Alejandro Vega ()
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Alejandro Vega: Department of Economics, Umeå University, Postal: Department of Economics, Umeå University, S 901 87 Umeå, Sweden
Abstract: The purpose of this study is to analyze the labour force participation response to major health shocks, such as new cancer diagnoses, heart attacks and strokes, in middle- aged to elderly Mexican couples. The data originate from the Mexican Health and Aging Study (MHAS), and provides information on how couples coordinate their labour market activities in response to major health shocks. I find that female labour force participation is negatively affected by a major health shock to her spouse. In contrast, there is not a significant effect of a female negative health shock on her spouse’s labour force participation. I find the same result when the labour force participation is split between part-time work and full-time work.
Keywords: health shock; labour force participation; household model; labour supply; elderly couples
49 pages, December 9, 2019
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