| By: |
Daysal, N. Meltem;
Orsini, C. (Tilburg University, Center for Economic Research) |
| 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. |
| Keywords: |
Employment of middle-aged women;Drug safety. |
| JEL: |
H8 I1 J2 |
| Date: |
2012 |
| URL: |
http://d.repec.org/n?u=RePEc:dgr:kubcen:2012026&r=ipr |