NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Are Recessions Good for Your Health Behaviors? Impacts of the Economic Crisis in Iceland

Tinna Laufey Ásgeirsdóttir, Hope Corman, Kelly Noonan, Þórhildur Ólafsdóttir, Nancy E. Reichman

NBER Working Paper No. 18233
Issued in July 2012
NBER Program(s):   HE

This study exploits the October 2008 economic crisis in Iceland to identify the effects of a macroeconomic downturn on a range of health behaviors. Using longitudinal survey data that include pre- and post- reports from the same individuals, we investigate the effects of the crisis on smoking, heavy drinking, dietary behaviors, sleep, and other health behaviors and investigate changes in work hours, real income, wealth, and mental health as potential mediators. We also consider the role of prices in shaping health behaviors and compute participation elasticities for the various behaviors. We find that the crisis led to reductions in all health-compromising behaviors examined and that it led to reductions in certain health-promoting behaviors but increases in others. The individual-level mediators explained some, but not all of the effects. We infer that price increases played a large role in the effects of the crisis on health behaviors.

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Document Object Identifier (DOI): 10.3386/w18233

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