Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278924 
Authors: 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16226
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This study provides new evidence regarding the extent to which medical care mitigates the economic consequences of various health shocks for the individual and a wider family. To obtain causal effects, I focus on the role of medical scientific discoveries and leverage the longitudinal dimension of unique administrative data for Sweden. The results indicate that medical innovations strongly mitigate the negative economic consequences of a health shock for the individual and create spillovers to relatives. Such mitigating effects are highly heterogeneous across diagnoses that cause health shocks. These results suggest that medical innovations substantially reduce the burden of welfare costs yet produce income inequalities.
Subjects: 
medical innovation
health shock
family disposable income
income inequality
difference-in-differences-in-differences approach
machine learning
JEL: 
I14
I18
J22
J24
J38
O31
Document Type: 
Working Paper

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