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Health and Health Inequality during the Great Recession: Evidence from the PSID
We estimate the impact of the Great Recession of 2007-2009 on health outcomes in the United States. We show that a one percentage point increase in the unemployment rate resulted in a 7.8-8.8 percent increase in reports of poor health. Mental health was also adversely impacted and reports of chronic drinking increased. The bulk of the effects were borne by white Americans and the less educated.
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