The Long-Term Impact of an Early Career Recession on Health and Health-Related Behaviors

Using National Longitudinal Survey of Youth 1997, we estimate the long-term impact of an early career recession on various health outcomes and health-related behaviors. The early career recession is measured by the state-specific unemployment rate in the year of labor market entry. Using an instrumental variable approach, we address the potential selection issues on the timing of labor market entry. We find that first, an early career recession has an adverse impact on health status, depression, smoking, heavy drinking, illicit drug use, exercise, and daily fruit intake; and second, these adverse effects are especially pronounced among lower educated individuals.