Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284668 
Year of Publication: 
2023
Series/Report no.: 
Economics Working Paper Series No. 2023/06
Publisher: 
Auckland University of Technology (AUT), Faculty of Business, Economics and Law, Auckland
Abstract: 
The literature on health shocks finds that minor injuries have only a short-term impact on labour market outcomes. However, mild traumatic brain injuries (mTBIs, commonly referred to as concussions) may be different as the medical literature highlights that they can have long-term health and cognitive effects. We use administrative data on all medically-diagnosed mTBIs in New Zealand linked to monthly tax records to examine the labour market effects of suffering a mTBI up to four years after the injury. We use a comparison group of those who suffer a mTBI but at a later date to overcome potential endogeneity issues, and employ a doubly-robust difference-in-differences method. We find that suffering a mTBI has negative effects on both employment and earnings. Rather than dissipating over time, these negative effects grow, representing a decrease in employment rate of 20 percentage points and earning losses of about a third after 48 months. Our results highlight the need for timely diagnosis and treatment to mitigate the effect of mTBIs on individuals' labour market outcomes to reduce economic and social costs.
Subjects: 
health shock
mild traumatic brain injury
labour market outcomes
JEL: 
I10
I14
J01
J31
Document Type: 
Working Paper

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