The economic effects of GLP-1s
The economic effects of GLP-1s by Tyler Cowen July 21, 2026 at 2:38 am in Data Source Economics Medicine 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%.
- ▪The economic effects of GLP-1s by Tyler Cowen July 21, 2026 at 2:38 am in Data Source Economics Medicine We estimate the causal impacts of GLP-1 treatment on labor market outcomes using linked Danish administrative data and a matched stacke
- ▪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%.
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The economic effects of GLP-1s by Tyler Cowen July 21, 2026 at 2:38 am in Data Source Economics Medicine 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.
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