The Application of Quasi-Experimental Approaches to the Analysis of the Relationship Between Employment and Health

Abstract

This study is the first to use quasi-experimental approaches to analyze the employment–health relationship in Russia. We employ propensity score matching to assess the impact on self-reported health of being employed or unemployed during the period 2010-2018. Using a difference-in-differences estimator, we also explore the effect of re-employment on physical health. Controlling for selection bias, we find a negative impact of unemployment on physical health. We also confirm that being employed leads to better self-reported health than being unemployed. Part of the effect is related to improved individual mental health. Furthermore, the difference-in-differences estimator of the re-employment effect shows that finding a job after three years of not working increases self-reported health. The results have important policy implications. The government should actively promote employment and initiate information campaigns to promote free health checkups for the unemployed. In Russia, where the state bears the cost of healthcare, these policies will eventually allow the government to save money on medical treatment. 

JEL: C21, I10, I12.