This paper aims to investigate whether shocks to the health of a self‐employed worker in Brazil increase the labour supply of other household members.
Using data from the Brazilian National Household Survey, this paper investigates whether the probability of other household members entering the labour force increases as a reaction to a decrease in income caused by the absence from work due to health problems of a head of household who is self‐employed.
The empirical evidence indicates that absence of the head of household from work due to health problems seems to increase the probability of other household members entering the labour force.
The paper provides evidence regarding the consequences of negative shocks to the health of self‐employed workers on households' labour supply decisions in Brazil.
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