Recessions, Job Loss, and Mortality among Older Workers

Prior research has found sizable effects of job loss on mortality among older workers in the U.S., but we know little about whether context conditions modify this effect. We hypothesize that effects of job loss on mortality are stronger if job loss occurs during labor market downturns and weaker if unemployment benefits are generous. Our empirical analyses use data from the Health and Retirement Survey (HRS) and exploits variation in context conditions across U.S. states. Consistent with prior research, we find that job loss leads to elevated mortality risks in the short- and long-term. This effect is particularly strong if job loss occurs during labor market downturns resulting in a sizable reduction in life expectancy. We find no evidence that generous unemployment benefits have protective effects.