In And Out Of Unemployment –Labour Market Transitions And The Role Of Testosterone

Peter Eibich, Ricky Kanabar, Alexander Plum, Julien Schmied

Research output: Contribution to journalArticlepeer-review

10 Downloads (Pure)

Abstract

Biological processes have provided new insights into diverging labour market trajectories. This paper uses population variation in testosterone levels to explain transition probabilities into and out of unemployment. We examine labour market transitions for 2004 initially employed and 111 initially unemployed British men from the UK Household Longitudinal Study (“Understanding Society”) between 2011 and 2013. We address the endogeneity of testosterone levels by using genetic variation as instrumental variables (Mendelian Randomization). We find that for both initially unemployed men as well as initially employed men, higher testosterone levels reduce the risk of unemployment. Based on previous studies and descriptive evidence, we argue that these effects are likely driven by differences in cognitive and non-cognitive skills as well as job search behaviour of men with higher testosterone levels. Our findings suggest that latent biological processes can affect job search behaviour and labour market outcomes without necessarily relating to illness and disability.

Original languageEnglish
Article number101123
Number of pages36
JournalEconomics & Human Biology
Volume46
Early online date15 Mar 2022
DOIs
Publication statusPublished - 31 Aug 2022

Keywords

  • Labour market dynamics
  • Testosterone
  • Unemployment

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (miscellaneous)

Fingerprint

Dive into the research topics of 'In And Out Of Unemployment –Labour Market Transitions And The Role Of Testosterone'. Together they form a unique fingerprint.

Cite this