The Miracle Drug: Hormone Replacement Therapy and Labor Market Behavior of Middle-Aged Women

N. Meltem Daysal, C. Orsini

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Abstract

Abstract: In an aging society, determining which factors contribute to the employment of older individuals is increasingly important. This paper sheds light on the impact of medical innovation in the form of Hormone Replacement Therapy (HRT) on employment of middle-aged women. HRT are drugs taken by middle-aged women to soften symptoms related to menopause. Before 2002, HRT products were among the most popular prescription drugs in America. We use the timing of the release of information of the potential hazardous effects of HRT—uncovered in 2002 by the largest randomized trials on women ever undertaken—as an instrument for the purchase of the affected drugs within a Fixed Effect Instrumental Variable framework. We find that HRT use impacts employment: namely, that HRT use increases employment by 25 percentage points among middle-aged women who would have taken HRT but who do not take HRT after the release of information of its potential hazardous effects.
Original languageEnglish
Place of PublicationTilburg
PublisherEconometrics
Number of pages51
Volume2012-026
Publication statusPublished - 2012

Publication series

NameCentER Discussion Paper
Volume2012-026

Keywords

  • Employment of middle-aged women
  • Drug safety

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