Abstract

Using US state level data for 1974 to 2003, this paper estimates a relationship that allows for transitory and permanent effects of unemployment rates on mortality. It shows that the transitory effect of increasing unemployment rate is to decrease mortality. The permanent effect of increasing unemployment rates is to increase mortality. The detrimental effects of higher unemployment rates on health take long time to become visible. The permanent scars of unemployment on the population health are detrimental and overwhelming that dwarf any opposite transitory effects.

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