August 2009 | DANIEL SULLIVAN AND TILL VON WACHTER
This paper examines the impact of job displacement on mortality using administrative data on Pennsylvania workers in the 1970s and 1980s, matched with Social Security Administration death records from 1980 to 2006. The study finds that high-seniority male workers who were displaced experienced a 50%–100% increase in mortality rates in the year following their job loss. This effect declines over time but remains significant even twenty years later, leading to a 10%–15% increase in annual death hazards. If sustained, this would result in a loss of 1.0–1.5 years of life expectancy for workers displaced in middle age. The study controls for various factors, including earnings and industry or firm characteristics, and finds that larger earnings losses are associated with greater increases in mortality. The results suggest that job displacement has substantial and long-lasting negative effects on health and life expectancy.This paper examines the impact of job displacement on mortality using administrative data on Pennsylvania workers in the 1970s and 1980s, matched with Social Security Administration death records from 1980 to 2006. The study finds that high-seniority male workers who were displaced experienced a 50%–100% increase in mortality rates in the year following their job loss. This effect declines over time but remains significant even twenty years later, leading to a 10%–15% increase in annual death hazards. If sustained, this would result in a loss of 1.0–1.5 years of life expectancy for workers displaced in middle age. The study controls for various factors, including earnings and industry or firm characteristics, and finds that larger earnings losses are associated with greater increases in mortality. The results suggest that job displacement has substantial and long-lasting negative effects on health and life expectancy.