Work

Firm quality and health maintenance

Year: 2025

Type: article

Abstract: We estimate the impact of firm quality - primarily measured by the firm-level wage premium - on the health maintenance of employees. Using linked employer-employee administrative panel data from Hungary, we analyze the dynamics of healthcare use before and after moving to a new firm. We show that moving to a higher-paying firm leads to higher consumption of drugs for cardiovascular conditions and more diagnostic and primary care visits, without evidence of deteriorating physical health, and, among men and older workers, to lower consumption of medications for mental health conditions. The results are robust to using alternative firm quality indicators based on productivity and worker flows, and to controlling for firm size, individual wage, and possible peer effects. The results suggest that higher-paying firms provide beneficial health-related amenities via the detection of previously undiagnosed chronic physical illnesses and improved mental health. Plausible mechanisms include higher-quality occupational health check-ups and less stressful working conditions.

Source: Journal of Health Economics

DOI: 10.1016/j.jhealeco.2025.103045

Authors: Anikó Bíró, Péter Elek

Institutions: Eötvös Loránd University, ELTE Centre for Economic and Regional Studies, Corvinus University of Budapest

Language: English

Topic: Healthcare Policy and Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Good health and well-being

Open Access status: hybrid

Estimated APC paid: $4,260