Good times make you sick

This study uses microdata from the 1972–1981 National Health Interview Surveys (NHIS) to examine how health status and medical care utilization fluctuate with state macroeconomic conditions. Personal characteristics, location fixed-effects, general time effects and (usually) state-specific time trends are controlled for. The major finding is that there is a counter-cyclical variation in physical health that is especially pronounced for individuals of prime-working age, employed persons, and males. The negative health effects of economic expansions persist or accumulate over time, are larger for acute than chronic ailments, and occur despite a protective effect of income and a possible increase in the use of medical care. Finally, there is some suggestion that mental health may be procyclical, in sharp contrast to physical well-being.