Links between Ill Health and Regional Economic Performance: Evidence from Swedish Longitudinal Data

Abstract

While poor health has been associated with economic outcomes at the national level, its effect on economic outcomes at the individual and local level remains less well known. Using nationally representative longitudinal data from Sweden, we examined the extent to which an individual's poor health leads to poor economic outcomes for that individual. In order to understand the effects of poor health at a regional level, we also examined the spillover effects of the individual's poor health on the economic outcomes of the people linked to the individual. We report an association between an individual's poor health and both that individual's subsequent adverse economic outcomes and adverse economic outcomes of the individual's network. Our study highlights the importance of the association between health and economic well-being as well as potential adverse spillover effects of poor health on local economies.