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Unemployment and general cognitive ability: A review and meta-analysis

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  • Vélez-Coto, María
  • Rute-Pérez, Sandra
  • Pérez-García, Miguel
  • Caracuel, Alfonso

Abstract

Evidence suggests an association between unemployment and general cognitive ability. Factors such as changes in environmental stimulation and the effects of stress may act as mediators in this relationship. We conduct a qualitative review and meta-analysis to determine whether an association between unemployment and general cognitive ability exists. Eighteen studies were included in the qualitative review, and six in the meta-analysis. Results of the review indicated a significant association between unemployment and lower cognitive ability. The meta–analysis supports this association, displaying a medium effect size which increased when age was included as a covariate. Both analyses point towards the existence of a relationship between unemployment and low cognition, moderated by age and promoted by the loss of stimulation obtained through employment, as well as by the stress experienced during unemployment. Based on these results, a series of suggestions are made to improve future studies in this emerging area.

Suggested Citation

  • Vélez-Coto, María & Rute-Pérez, Sandra & Pérez-García, Miguel & Caracuel, Alfonso, 2021. "Unemployment and general cognitive ability: A review and meta-analysis," Journal of Economic Psychology, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:joepsy:v:87:y:2021:i:c:s0167487021000623
    DOI: 10.1016/j.joep.2021.102430
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    1. Block, Joern & Kritikos, Alexander S. & Priem, Maximilian & Stiel, Caroline, 2022. "Emergency-aid for self-employed in the Covid-19 pandemic: A flash in the pan?," Journal of Economic Psychology, Elsevier, vol. 93(C).
    2. Freise, Diana & Schmitz, Hendrik & Westphal, Matthias, 2022. "Late-career unemployment and cognitive abilities," Journal of Health Economics, Elsevier, vol. 86(C).

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