The Effect of Health Shocks on Earnings: Evidence from Chile
Early Career Research Award
This project aims to estimate the causal effect of health on earnings. Combining administrative hospital records and earnings data from Chile, I use accidents as a source of identifying variation. By comparing monthly earnings of individuals who had an accident and those in a control group I can estimate the short and long-term effects of health shocks on earnings and labor force participation. In addition, I will investigate whether more comprehensive health insurance mitigates the negative impacts of accidents. Finally, the data allow me to estimate the causal effect of education on the relationship between health and earnings.