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The effect of involuntary unemployment on the mental health of spouses

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  • Marcus, Jan

Abstract

This paper is the first to estimate the effect of one partner's entry into unemployment on the mental health of both spouses in Germany. In order to give the estimates a causal interpretation, this study focuses on an exogenous entry into unemployment (plant closure) and applies a regression-adjusted semiparametric difference-in-difference matching strategy, which is robust against selection on observables and time-invariant unobservables. About one year after the plant closure, unemployment decreased mental health by 25% of a standard deviation for the unemployed individuals themselves and by 23% of a standard deviation for their spouses. The results are robust over various matching specifications and different choices of the conditioning variables. Furthermore, this paper shows that mental health does not follow a different trend for treated and matched controls before the plant closure, adding additional credibility to the identification assumption. --

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Paper provided by Verein für Socialpolitik / German Economic Association in its series Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century with number 65413.

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Date of creation: 2012
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Handle: RePEc:zbw:vfsc12:65413

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Web page: http://www.socialpolitik.org/
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Cited by:
  1. Schmitz, H.; & Westphal, M.;, 2013. "Short- and medium-term effects of informal care provision on health," Health, Econometrics and Data Group (HEDG) Working Papers 13/23, HEDG, c/o Department of Economics, University of York.
  2. André Hajek, 2013. "Life Satisfaction and Unemployment: The Role of Voluntariness and Job Prospects," SOEPpapers on Multidisciplinary Panel Data Research 601, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Peter Eibich, 2014. "Understanding the Effect of Retirement on Health Using Regression Discontinuity Design," SOEPpapers on Multidisciplinary Panel Data Research 669, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Nádia Simões & Nuno Crespo & Sandrina B. Moreira & Celeste A. Varum, 2013. "Measurement and Determinants of Health Poverty and Richness – Evidence from Portugal," Working Papers Series 2 13-08, ISCTE-IUL, Business Research Unit (BRU-IUL).

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