American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Do Medical Treatments Work for Work? Evidence from Breast Cancer Patients
American Economic Journal: Economic Policy
(pp. 379–409)
Abstract
We investigate the effects of radiation therapy on the mortality and economic outcomes of breast cancer patients. We implement a 2SLS strategy within a difference-in-difference framework exploiting variation in treatment stemming from a medical guideline change in Denmark. We reproduce the results from an RCT showing the life-saving benefits of radiotherapy. We show radiation therapy also has economic returns: Ten years after diagnosis, treatment increases employment by 37 percent and earnings by 45 percent. Previous work has documented a substantial employment drop after a breast cancer diagnosis. Our results imply that radiation therapy can reduce this effect by 70 percent.Citation
Daysal, N. Meltem, William N. Evans, Mikkel Hasse Pedersen, and Mircea Trandafir. 2025. "Do Medical Treatments Work for Work? Evidence from Breast Cancer Patients." American Economic Journal: Economic Policy 17 (4): 379–409. DOI: 10.1257/pol.20240133Additional Materials
JEL Classification
- H51 National Government Expenditures and Health
- I12 Health Behavior
- I18 Health: Government Policy; Regulation; Public Health
- J16 Economics of Gender; Non-labor Discrimination
- J22 Time Allocation and Labor Supply
- J31 Wage Level and Structure; Wage Differentials