We estimate the causal impacts of GLP-1 treatment on labor market outcomes using linked Danish administrative data and a matched stacked difference-in-differences design. We compare patients who initiate GLP-1 treatment during the first two years of Semaglutide availability to observably similar patients who initiate four years later. We find that GLP-1 treatment reduces long-term sickness leave by 17.3%. We estimate total fiscal benefits of GLP-1 initiation of approximately 1.3–1.5% of annual labor income per employed individual. We do not detect statistically significant or economically meaningful impacts on income, labor force participation, or employment over four years.

That is from a new NBER working paper by N. Meltem Daysal, Camille JH. Fredrickson, Ida L. Kristiansen, Mircea Trandafir & Jonathan Zhang.

The post The economic effects of GLP-1s appeared first on Marginal REVOLUTION.

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