A comparison of diagnosed and undiagnosed diabetes patients and labor supply

•We examine the differences and similarities between diagnosed and undiagnosed cases of type 2 diabetes.•Diagnosed type 2 diabetes is associated with a reduction in male and female labor supply on both the extensive and intensive margins.•Individuals with undiagnosed diabetes experience a similar labor supply penalties as individuals with recently diagnosed type 2 diabetes.

Using data from four waves of the National Health and Nutrition Examination Survey, we examine the difference between individuals with diagnosed and undiagnosed cases of type 2 diabetes and their labor supply decisions. We show that a diagnosis of type 2 diabetes is significantly associated with a reduction in both male and female employment probability by 11 and 19 percentage points, respectively. Additionally, hours worked by individuals with diagnosed type 2 diabetes are 7 h lower per week for males and 8 h lower per week for females. Further, individuals with undiagnosed type 2 diabetes experience a drop in labor supply somewhat smaller but similar to their diagnosed counterparts. This association may be driven by the similarities between undiagnosed and very recently diagnosed type 2 diabetes. In all estimations, we consistently find that type 1 diabetes has a different effect than either diagnosed or undiagnosed type 2 diabetes.