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Health Deterioration and Risks of Labour Market Exits - Young Workers in Double Trouble?

Health Deterioration and Risks of Labour Market Exits - Young Workers in Double Trouble?

Recent data from EU member states showed that one quarter of the working age population had a chronic disease, while 19% reported long-standing health issues. The Norwegian Bureau of Statistics estimates that the employment rate of people with disabilities in working age is approximately 41%.

These national and international statistics indicate that the chronic-disease-work-income nexuses are important in terms of the future sustainability of the European welfare states. There are several proposed explanations for this phenomenon.

Our research proposal taps into some of the explanatory mechanisms. One perspective is that worsening health is correlated with increased likelihood of early retirement for individuals 40 years +, a prospect concerning policymakers.

Much research also suggests higher disability rates in younger cohorts. Results from studies focusing on employment effect of ill-health at younger ages suggest there is a significant causal effect from health deterioration on the probability of employment.

In the Norwegian context, mental health issues and musculoskeletal conditions are the leading causes behind most sick leaves and causes of transit into disability. Young workers with a chronic health problem risk both short- and long-term poverty as well as “outsiderness” – lacking a sense of belonging to their community.

We explore the effect of ill-health for young individuals already employed and diagnosed with mental health issues or musculoskeletal conditions.

The main aims of this proposal is to quantify the economic risks associated with changes in health status in young age, for the individual and for society; to detect factors shielding and exposing workers from these risks; and to explore public attitudes of fairness concerning the chronic disease-work-income nexus.

Contact

Egil Kjerstad

Research Director - Bergen

egkj@norceresearch.no
+47 56 10 76 18
+47 975 27 197

Project facts

Name

Health Deterioration and Risks of Labour Market Exits - Young Workers in Double Trouble?

Status

Active

Duration

15.08.23 - 31.12.26

Location

Bergen

Total budget

12.000.000 NOK

Research group

Research Topics

Funding

Research Council of Norway (RCN)

Prosjekteier

NORCE

Project members

Håvard Thorsen Rydland