Are recessions really good for your health? Evidence from Canada.

Soc Sci Med

Department of Economics, Wilfrid Laurier University, 75 University Avenue W., Waterloo, ON, Canada N2L 3C5.

Published: April 2012

AI Article Synopsis

  • This study explores the link between business cycles and health in Canada, focusing on how fluctuations in the economy affect mortality rates.
  • Using provincial data from 1977 to 2009 and a fixed effects model, the research finds a procyclical relationship, confirming that higher unemployment correlates with lower mortality rates among middle-aged Canadians.
  • Unlike findings in the U.S., the study does not show a significant impact of economic cycles on mortality rates for infants and seniors.

Article Abstract

This study investigates the relationship between business cycle fluctuations and health in the Canadian context, given that a procyclical relationship between mortality rates and unemployment rates has already been well established in the U.S. literature. Using a fixed effects model and provincial data over the period 1977-2009, we estimate the effect of unemployment rates on Canadian age and gender specific mortality rates. Consistent with U.S. results, there is some evidence of a strong procyclical pattern in the mortality rates of middle-aged Canadians. We find that a one percentage point increase in the unemployment rate lowers the predicted mortality rate of individuals in their 30s by nearly 2 percent. In contrast to the U.S. data, we do not find a significant cyclical pattern in the mortality rates of infants and seniors.

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Source
http://dx.doi.org/10.1016/j.socscimed.2011.12.038DOI Listing

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