Research

Publications

Changing Tracks: Human Capital Investment after Loss of Ability, with Anders Humlum and Jakob R. Munch. 

American Economic Review, Vol. 132, No. 5 (May 2025); Replication archive. 

Abstract: We provide the first evidence on how workers invest in human capital after losing ability. Using quasi-random work accidents in Danish administrative data, we find that workers enroll in bachelor's programs after physical injuries, pursuing degrees that build on their work experiences and provide pathways to cognitive occupations. Exploiting differences in eligibility driven by prior vocational training, we find that higher education moves injured workers from disability benefits to full-time employment. Reskilled workers earn 25% more than before their injuries and do not end up on antidepressants. Without higher education, by contrast, these workers end up entirely on disability benefits and often resort to taking antidepressants. Reskilling subsidies for injured workers pay for themselves four times over, and current rates of reskilling are substantially below the social optimum, especially for middle-aged workers.  

Earlier versions: IZA WP; Policy Brief (in Danish); Book Chapter (In Danish);

Coverage: Becker Friedmann Institute; Chicago Booth Review [video]; Forked Lightning; University of Copenhagen;

Working Papers

Reskilling and Resilience, with Anders Humlum

Conditionally Accepted, American Economic Review: Insights; 

Abstract: This paper shows that effective reskilling can have profound mental health benefits for workers and their partners. Using institutional variation in access to higher education after work accidents in Denmark, we find that reskilling prevents one case of depression for every three injured workers. Strikingly, the spillover effects on partners are just as large. These mental health gains are accompanied by higher partner employment and increased separation rates, suggesting that reskilling frees partners from costly relationship commitments. Together, the mental health and partner benefits add 83% to the direct labor earnings gains from reskilling. 

Versions:  NBER version 

Coverage: NPR, Becker Friedman Institute

Automation, Injuries, and Stress, with Anders Humlum and Jakob R. Munch

Abstract: How do robots impact the health of workers? We use administrative data that link robot investments of firms to health records of individuals to follow workers whose employers adopt industrial robots. Our first finding is that robots reduce workplace injuries. The safety benefits of robots concentrate on production workers who were exposed to physically demanding tasks and heavy lifts before robots were installed. Industrial robots lowered the injury rate by 6.7% for the average worker in a physical job from 2000 to 2017. In contrast to the improvements in workplace safety, we find that robots cause stress among employees. In particular, we find that workers experience 28.1% more stress-related diagnoses after robots arrive at their workplace. The distress from robots is suffered throughout the organization by many types of employees.

Versions: Policy Brief (in Danish);

Work in Progress

Culling the Herd? Mass Layoff Events and Previous Sickness, with David Hummels, Jakob R. Munch and & Chong Xiang. (Draft coming soon!)

Automation and Firm Market Power: Evidence from Danish Manufacturing Firms. (Draft available upon request)