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IZA Discussion Paper No. 17771
March 2025
Health and Labor Market Consequences of Low-Value Care: The Role of Practice Style
Mattia Albertini, Pieter Bakx, Fabrizio Mazzonna

We investigate the health and labor market consequences of primary care variation in benzodiazepine prescriptions, a common type of low-value care. Linking Dutch general practitioners’ records to administrative data, we construct an exogenous measure of prescribing behavior that exploits institutional constraints limiting patient choice. Using the loss of a close relative as a common mental health shock and a dynamic difference-in-differences approach, we find that patients treated by high-prescribing GPs are more likely to receive out-of-guidelines benzodiazepine prescriptions, become long-term users, and are less likely to access specialized mental health care. These patients also experience worse labor market outcomes, including increased short-term reliance on unemployment benefits and substantial long-term declines in earnings, primarily driven by reduced wages.

Kommunikation
Mark Fallak
mark.fallak@liser.lu
+352 585-855-526
World of Labour
Olga Nottmeyer
olga.nottmeyer@liser.lu
+352 585-855-501
Netzwerkkoordination
Christina Gathmann
christina.gathmann@liser.lu

Das IZA@LISER-Netzwerk ist eine weltweite Gemeinschaft für exzellente Forschung in der Arbeitsmarktökonomie und angrenzenden Fachgebieten. Nach dem Wechsel von Bonn wird das Netzwerk nun am Luxembourg Institute of Socio-Economic Research (LISER) koordiniert.

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