The impact of layoffs on dietary and drinking behaviors across the life course: Evidence from China (1989 – 2011)

Existing research on the health impact of job loss has predominantly focused on developed economies, often overlooking how these effects manifest in developing countries, particularly over the long term. To address this gap, our study explores the impact of layoffs on dietary diversity and alcohol consumption among workers during China’s economic transitions from 1989 to 2011. Using longitudinal data from the China Health and Nutrition Survey spanning over two decades and applying fixed-effects models, we analyzed the temporal and career-stage-specific effects of job loss. Our results indicate that layoffs led to a significant reduction in dietary diversity, a key indicator of dietary quality and food insecurity, with the effect being most pronounced shortly after job loss and tapering off over time. In contrast, alcohol consumption increased following layoffs. Mid-career workers experienced the greatest decline in dietary diversity, late-career workers faced increased risks of alcohol consumption, and early-career workers were more likely to engage in heavy drinking. These findings highlight the complex interplay between financial constraints, psychological stress, and lifestyle choices. This study highlights that layoffs adversely affect workers at all career stages, though the specific health behaviors impacted differ by career stage. Our findings provide valuable evidence for the development of policies and interventions tailored to different worker groups and offer insights into the dynamics of transitional and post-transitional China.