The effect of great recession on european lifespan inequality

Abstract

This paper investigates the impact of the Great Recession on Lifespan Inequality across 26 European countries, aiming to clarify the contrasting views between pro-cyclical and counter-cyclical mortality patterns within business cycles. By analyzing mortality data from 2004-2019 and categorizing countries based on the GR's severity, our study employed a Difference-in-Differences methodology to estimate the year-to-year Average Treatment effect on the Treated and the Overall Treatment Effect. We leveraged Callaway and Sant'Anna's (2021) Difference-in Differences strategy, in order to perform causal effect estimation through their doubly-robust estimators (and also employing their did R library). The findings demonstrate a significant, negative short-to-medium-term impact of the Great Recession on Lifespan Inequality, especially in countries most affected, signifying a beneficial outcome in mortality distribution. These findings were confirmed through two robustness checks, analyzing the effects in separate groups and over the full period. Beyond offering a nuanced perspective on the relationship between economic downturns and Lifespan Inequality, this study underscores the overarching political implications. As economic downturns loom larger and more recurrent, the integration of public health, economic policy, and social justice becomes paramount, especially in strategies promoting equality, inclusivity, and sustainable growth.