Hosseini, Roozbeh; Kopecky, Karen A.; Zhao, Kai - 2021
Using a dynamic panel approach, we provide empirical evidence that negative health shocks reduce earnings. The effect … health. We build a dynamic, general equilibrium, life cycle model that is consistent with these findings. In the model …, individuals whose health is risky and heterogeneous choose to either work, or not work and apply for social security disability …