Job loss is bad for your health - Swedish evidence on cause-specific hospitalization following involuntary job loss

This paper examines the impact of job loss on a number of non-fatal health events, which are nonetheless severe enough to require hospital in-patient care. We focus on job loss due only to establishment closures, as this reduces the problem of distinguishing between causation and selection. Using linked employee-employer register data, we identify the job losses due to all establishment closures in Sweden in 1987 or 1988. During a subsequent 12-year period, we find that job loss significantly increases the risk of hospitalization due to alcohol-related conditions, among both men and women, and due to traffic accidents and self-harm, among men only. We find no evidence, however, that job loss increased the risk of severe cardiovascular diseases such as myocardial infarction or stroke.