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Workplace health promotion and labour market performance of employees

Martin Huber, Michael Lechner and Conny Wunsch

Journal of Health Economics, 43, 170-189


This paper investigates the average effects of firm-provided workplace health promotion measures on labour market outcomes of the firms’ employees. Exploiting linked employer-employee panel data that consist of rich survey-based and administrative information on firms, workers and regions, we apply a flexible propensity score matching approach that controls for selection on observables and time-constant unobserved factors. While the effects of analysing sickness absenteeism appear to be rather limited, our results suggest that health circles/courses increase tenure and job stability across various age groups. A key finding is that health circles/courses strengthen the labour force attachment of elderly employees (51-60), implying potential cost savings for public transfer schemes such as unemployment insurance or early retirement schemes.

Health: General, Health: Other, Nonwage Labor Costs and Benefits, Retirement Plans, Private Pensions

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