Do Medical Treatments Work for Work? Evidence from Breast Cancer Patients
CESifo, Munich, 2024
CESifo Working Paper No. 10962
![](https://cesifo.org/DocImg/cesifo1_wp10962.jpg?c=1708957624)
We investigate the effects of radiation therapy on the mortality and economic outcomes of breast cancer patients. We implement a 2SLS strategy within a difference-in-difference framework exploiting variation in treatment stemming from a medical guideline change in Denmark. Using administrative data, we reproduce results from an RCT showing the lifesaving benefits of radiotherapy. We then show therapy also has economic returns: ten years after diagnosis, treatment increases employment by 37% and earnings by 45%. Mortality and economic results are driven by results for more educated women, indicating that equalizing access to treatment may not be sufficient to reduce health inequalities.
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