Harsh Times: Do Stressors Lead to Labor Market Losses?

46 Pages Posted: 5 Jun 2017

See all articles by Terhi Maczulskij

Terhi Maczulskij

University of Jyväskylä - School of Business and Economics

Petri Bockerman

Labour Institute for Economic Research; University of Turku - Turku School of Economics

Abstract

This paper examines the effects of past stressful life events on subsequent labor market success using data on twins matched to comprehensive register-based, individual-level information on income and employment status. The long-term labor market outcomes are measured during 20-year follow-up. We use the within-twin method to account for unobservable family and genetic confounders. The twin design reveals three important findings. First, stressors lead to worse labor market outcomes. Second, men are more affected by financial and job-related stressors, while women are more affected by family stressors. Third, the negative effects that stressors have on labor market outcomes diminish as time passes.

Keywords: stressors, stressful life events, employment, earnings, co-twin control, twins

JEL Classification: I31, J24, J31

Suggested Citation

Maczulskij, Terhi and Bockerman, Petri, Harsh Times: Do Stressors Lead to Labor Market Losses?. IZA Discussion Paper No. 10773, Available at SSRN: https://ssrn.com/abstract=2979918

Terhi Maczulskij (Contact Author)

University of Jyväskylä - School of Business and Economics ( email )

University of Jyväskylä
PO Box 35
FIN 40351, FIN-40014
Finland

Petri Bockerman

Labour Institute for Economic Research ( email )

FIN-00530 Helsinki
Finland
+358 9 2535 7332 (Phone)
+358 9 2535 7332 (Fax)

HOME PAGE: http://www.petribockerman.fi/

University of Turku - Turku School of Economics ( email )

Rehtorinpellonkatu 3
TURKU, FI-20500
Finland

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