@article{57e69c813f74484bae44a5832f88483a,
title = "The effect of accidents on labor market outcomes: Evidence from Chile",
abstract = "We estimate the causal effect of accidents on employment and earnings among Chilean men using event study methods and monthly administrative data. An accident of any type reduces the probability of being employed by 8.4 percentage points in the first year, by 11.2 percentage points in the second year, and by 14.8 percentage points in the third year after the accident. On average, over the three years after the accident, employment declines by 14%, relative to the pre-accident mean. In addition, accidents reduce monthly earnings by around 11% in the first year, 17% in the second year, and 22% in the third year after the accident. On average, monthly earnings fall by 16%, relative to the pre-accident average. Thus, we estimate persistent and increasing labor market effects of accidents over time. These effects vary by individuals' age, education, and industry and by severity of the accident. Our findings imply that the economic consequences of health shocks go beyond direct medical expenses.",
keywords = "accidents, earnings, employment, health shocks, labor market outcomes",
author = "Francisco Parro and Pohl, {R. Vincent}",
note = "Funding Information: We are grateful to Daniel Avdic, Prashant Bharadwaj, Lukas Kauer, Josh Kinsler, and Chris Neilson for providing valuable feedback, as well as to seminar and conference participants at the AEA, ASHEcon, ATINER, CEA, CHESG, University of Duisburg‐Essen, EALE, ECHE, Essen Health Conference, iHEA, University of Maryland Baltimore County, McGill, McMaster, LMU Munich, University of Ottawa, SOLE, and University of Toronto for their helpful comments. Pohl gratefully acknowledges financial support through an Early Career Research Grant from the W.E. Upjohn Institute for Employment Research and from the Queen's University Principal's Development Fund. We would also like to thank Loreto Reyes and Cristian Valencia for providing excellent research assistance. All remaining errors are our own. Funding Information: We are grateful to Daniel Avdic, Prashant Bharadwaj, Lukas Kauer, Josh Kinsler, and Chris Neilson for providing valuable feedback, as well as to seminar and conference participants at the AEA, ASHEcon, ATINER, CEA, CHESG, University of Duisburg-Essen, EALE, ECHE, Essen Health Conference, iHEA, University of Maryland Baltimore County, McGill, McMaster, LMU Munich, University of Ottawa, SOLE, and University of Toronto for their helpful comments. Pohl gratefully acknowledges financial support through an Early Career Research Grant from the W.E. Upjohn Institute for Employment Research and from the Queen's University Principal's Development Fund. We would also like to thank Loreto Reyes and Cristian Valencia for providing excellent research assistance. All remaining errors are our own. Publisher Copyright: {\textcopyright} 2021 John Wiley & Sons Ltd.",
year = "2021",
month = may,
doi = "10.1002/hec.4230",
language = "English",
volume = "30",
pages = "1015--1032",
journal = "Health Economics (United Kingdom)",
issn = "1057-9230",
publisher = "John Wiley and Sons Ltd",
number = "5",
}
