Job Security, Stress and Health: Evidence from Russian Privatization

Robert Jensen, Harvard University

I examine the health consequences of concern over job loss. I use panel data from Russia which includes measures of health and perceived likelihood of job loss. To deal with concerns about reverse causality and unobservable differences between those with high and low likelihood of job loss, I instrument for changes in likelihood of job loss using industry-by-region privatization rates which were announced between two rounds of the survey. For men, I find that increased concern over job loss is associated with a 5% increase in measured blood pressure, an 11% increased likelihood of chest pains and a 3% increase in the likelihood of heart attack. Alcohol consumption increases by 34 grams, and smoking by 2 cigarettes per day. For women, the effects are much smaller; about half in most cases. I argue these results suggest that much of the increased mortality in Russia following transition to a market economy may be attributable to economic stress.