The effect of job loss on pharmaceutical prescriptions

We estimate the effect of job loss on the probability that long-tenured workers are prescribed anti-hypertensive and psychotropic drugs. We exploit two administrative data sources from the Veneto region in Italy and estimate an event-study model. Our results indicate that the probability of drug prescription increases among under-40 males but not among older males or female workers. We suggest that the effect on younger male workers is the combined result of their typical role as breadwinners, limited wealth buffers in case of layoff, and unfavourable employment legislative protection.