Labour Market Policy as Health Policy

Question 1

Correlation between labor market position and health

Answer 1

Unemployment insurance

Human capital
o Job loss –> loss of human capital –> poor health
o Something you acquire by being involved in the labor market that is beneficial to your health
o ‘Firm’ human capital = things that you learn about working for a specific employer; not necessarily transferable

Status/stigma of being unemployed

Fixed-term contracts (with a definite end)
o Rise of non-standard, precarious work
o Looming fear of job loss/instability leads to health consequences, such as through:
- Stress
- Health insurance (i.e., lack thereof)
- Might be more likely to have poor health to begin with
- Work hours

Question 2

Key labor market policies with health implications

Answer 2

o	Retirement
o	Minimum wage
o	Parental leave
o	‘Fringe’ benefits (e.g., health insurance)
o	Ability to unionize
o	Active labor market programs
o	Health + safety
o	Pensions
o	Contracts (e.g., employment protection)
o	Discrimination legislation

Question 3

State/limitations of the evidence

Answer 3

Although there are studies suggesting links between certain labor market policies and positive health outcomes, documenting the full impact of these proves complicated (consider the lack of nice experimental settings, for instance)