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Survivors' Mental Health and the Protective Role of Income Stability

Author

Listed:
  • Itzik Fadlon
  • Astrid Sophie Fugleholm
  • Torben Heien Nielsen

Abstract

We use administrative records on the universe of Danish households to characterize survivors' mental health following their spouse's death. We provide visually clear evidence for the immediate, large, and lingering adverse impacts and focus on studying the role of income security in driving the immediate effects. We find that, for both males and females, a large share of the spike in the take-up of mental health medication upon spousal death can be explained by the income loss imposed by the shock. Our results imply that safety net policies can improve survivors' mental health via the immediate liquidity they provide.

Suggested Citation

  • Itzik Fadlon & Astrid Sophie Fugleholm & Torben Heien Nielsen, 2026. "Survivors' Mental Health and the Protective Role of Income Stability," American Economic Review: Insights, American Economic Association, vol. 8(2), pages 265-284, June.
    • Handle: RePEc:aea:aerins:v:8:y:2026:i:2:p:265-84
    DOI: 10.1257/aeri.20250006
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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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