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Associations between labour market expenditures 
and self-rated health: A pooled multi-level 
analysis of 20 European countries 
Jongnam Hwang1, Edwin Ng1, Patricia O’Campo1,2, Carles Muntaner3 
1Centre for Research on Inner City Health, St. Michael’s Hospital, Toronto, Canada 
2Dalla Lana School of Public Health, University of Toronto, Toronto, Canada 
3Bloomberg Faculty of Nursing, University of Toronto, Toronto, Canada
Background 
 Existing studies find that the relationship between 
unemployment and poor health varies across different 
welfare states (Bambra & Eikemo, 2008). 
 Attempts to explain inter-regime differences infer that levels 
of social protection might have a moderating effect. 
 Labour market interventions are important forms of social 
protection that protect workers, promote employment, and 
stimulate efficient labour markets. 
 More work is needed to examine the health effects of labour 
market interventions. 
Source: Bambra, C., & Eikemo, T. (2008). Welfare state regimes, unemployment and health: a comparative study of the relationship between 
unemployment and self-reported health in 23 European countries. JECH.
Labour market expenditures 
 Active labour market policy expenditures 
: help unemployed people back to work 
• Job placement services, benefit administration and 
labour market programmes (i.e.,training, job creation) 
 Passive labour market policy expenditures 
: provide financial assistance 
• Unemployment compensation, early retirement for 
labour market reasons
Research questions 
1. Do labour market expenditures affect self-rated health? 
If so, how - through active measures that support 
unemployed workers to return back to work or passive 
measures that provide financial assistance? 
2. Do labour market expenditures affect the self-rated 
health of men and women differently?
Data source and methods 
 Data source 
• European Social Survey (ESS) rounds 2 (2004) and 4 (2008) 
• Organisation for Economic Co-operation Development 
(OECD) statistics 
• World Bank Statistics 
 Methods 
• A pooled sampled cross sectional design 
• Multi-level analysis 
 A total of 20 countries were selected 
 Working-aged respondents, 15-64 (n=42,542) were 
included
Countries by welfare regime typology 
Scandinavian Anglo-Saxon Bismarckian Eastern Southern 
Denmark 
United 
Kingdom 
Austria 
Czech 
Republic 
Italy 
Finland Ireland Belgium Hungary Portugal 
Norway France Poland Spain 
Sweden Germany Slovenia 
Luxembourg 
Netherlands 
Switzerland
Variables definition 
 Dependent variable 
• Individual self-rated health 
(Excellent/very good/good vs. Fair/bad) 
 Macro level independent variables 
• Active labour market policy expenditures (% of GDP) 
• Passive labour market policy expenditures (% of GDP)
Results 
 Active expenditures by gender 
Model1 Men Women 
OR (95% CI) p-value OR (95% CI) p-value 
0.48(0.30-0.77) <0.01* 0.53(0.31-0.88) 0.02 
Model2* Men Women 
OR (95% CI) p-value OR (95% CI) p-value 
0.49(0.26-0.89) 0.02 0.60(0.35-1.05) 0.07 
*Individual factors (age, education, employment status) and macro –social factors (welfare regimes, GDP growth and GDP 
per capita) included
Results 
 Passive expenditures by gender 
Model3 Men Women 
OR (95% CI) p-value OR (95% CI) p-value 
0.73(0.54-0.98) 0.04 0.78(0.57-1.08) 0.13 
Model 4* Men Women 
OR (95% CI) p-value OR (95% CI) p-value 
0.76(0.53-1.10) 0.15 0.78(0.57-1.08) 0.14 
*Individual factors (age, education, employment status) and macro –social factors (welfare regimes, GDP growth and GDP 
per capita) included
Results 
 Active expenditures are associated with less likelihood of 
bad self-rated health in men, but not in women in the fully 
adjusted model. 
 Passive expenditures are not associated with bad self-rated 
health in both men and women in the fully adjusted model.
Conclusions 
 As welfare regimes devote a larger share of their economy 
to active labour market policies, self-rated health tends to 
improve steeply. 
 Encouraging opportunities for unemployed workers to re-enter 
the workforce through active expenditures would 
likely improve population levels of self-rated health, 
especially in men. 
 Future work will consider cross-level interactions (i.e., 
educational levels and employment status).
Associations between labour market expenditures and self-rated health: A pooled multi-level analysis of 20 European countries

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Associations between labour market expenditures and self-rated health: A pooled multi-level analysis of 20 European countries

  • 1. Associations between labour market expenditures and self-rated health: A pooled multi-level analysis of 20 European countries Jongnam Hwang1, Edwin Ng1, Patricia O’Campo1,2, Carles Muntaner3 1Centre for Research on Inner City Health, St. Michael’s Hospital, Toronto, Canada 2Dalla Lana School of Public Health, University of Toronto, Toronto, Canada 3Bloomberg Faculty of Nursing, University of Toronto, Toronto, Canada
  • 2. Background  Existing studies find that the relationship between unemployment and poor health varies across different welfare states (Bambra & Eikemo, 2008).  Attempts to explain inter-regime differences infer that levels of social protection might have a moderating effect.  Labour market interventions are important forms of social protection that protect workers, promote employment, and stimulate efficient labour markets.  More work is needed to examine the health effects of labour market interventions. Source: Bambra, C., & Eikemo, T. (2008). Welfare state regimes, unemployment and health: a comparative study of the relationship between unemployment and self-reported health in 23 European countries. JECH.
  • 3. Labour market expenditures  Active labour market policy expenditures : help unemployed people back to work • Job placement services, benefit administration and labour market programmes (i.e.,training, job creation)  Passive labour market policy expenditures : provide financial assistance • Unemployment compensation, early retirement for labour market reasons
  • 4. Research questions 1. Do labour market expenditures affect self-rated health? If so, how - through active measures that support unemployed workers to return back to work or passive measures that provide financial assistance? 2. Do labour market expenditures affect the self-rated health of men and women differently?
  • 5. Data source and methods  Data source • European Social Survey (ESS) rounds 2 (2004) and 4 (2008) • Organisation for Economic Co-operation Development (OECD) statistics • World Bank Statistics  Methods • A pooled sampled cross sectional design • Multi-level analysis  A total of 20 countries were selected  Working-aged respondents, 15-64 (n=42,542) were included
  • 6. Countries by welfare regime typology Scandinavian Anglo-Saxon Bismarckian Eastern Southern Denmark United Kingdom Austria Czech Republic Italy Finland Ireland Belgium Hungary Portugal Norway France Poland Spain Sweden Germany Slovenia Luxembourg Netherlands Switzerland
  • 7. Variables definition  Dependent variable • Individual self-rated health (Excellent/very good/good vs. Fair/bad)  Macro level independent variables • Active labour market policy expenditures (% of GDP) • Passive labour market policy expenditures (% of GDP)
  • 8. Results  Active expenditures by gender Model1 Men Women OR (95% CI) p-value OR (95% CI) p-value 0.48(0.30-0.77) <0.01* 0.53(0.31-0.88) 0.02 Model2* Men Women OR (95% CI) p-value OR (95% CI) p-value 0.49(0.26-0.89) 0.02 0.60(0.35-1.05) 0.07 *Individual factors (age, education, employment status) and macro –social factors (welfare regimes, GDP growth and GDP per capita) included
  • 9. Results  Passive expenditures by gender Model3 Men Women OR (95% CI) p-value OR (95% CI) p-value 0.73(0.54-0.98) 0.04 0.78(0.57-1.08) 0.13 Model 4* Men Women OR (95% CI) p-value OR (95% CI) p-value 0.76(0.53-1.10) 0.15 0.78(0.57-1.08) 0.14 *Individual factors (age, education, employment status) and macro –social factors (welfare regimes, GDP growth and GDP per capita) included
  • 10. Results  Active expenditures are associated with less likelihood of bad self-rated health in men, but not in women in the fully adjusted model.  Passive expenditures are not associated with bad self-rated health in both men and women in the fully adjusted model.
  • 11. Conclusions  As welfare regimes devote a larger share of their economy to active labour market policies, self-rated health tends to improve steeply.  Encouraging opportunities for unemployed workers to re-enter the workforce through active expenditures would likely improve population levels of self-rated health, especially in men.  Future work will consider cross-level interactions (i.e., educational levels and employment status).