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Mental health and productivity at work: Does what you do matter?

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  • Bubonya, Melisa
  • Cobb-Clark, Deborah A.
  • Wooden, Mark

Abstract

Much of the economic cost of mental illness stems from workers’ reduced productivity. Using nationally representative panel data we analyze the links between mental health and two alternative workplace productivity measures – absenteeism and presenteeism (i.e., lower productivity while attending work) – explicitly allowing these relationships to be moderated by the nature of the job itself. We find that absence rates are approximately five percent higher among workers who report being in poor mental health. Moreover, job conditions are related to both presenteeism and absenteeism even after accounting for workers’ self-reported mental health status. Job conditions are relatively more important in understanding diminished productivity at work if workers are in good rather than poor mental health. The effects of job complexity and stress on absenteeism do not depend on workers’ mental health, while job security and control moderate the effect of mental illness on absence days.

Suggested Citation

  • Bubonya, Melisa & Cobb-Clark, Deborah A. & Wooden, Mark, 2017. "Mental health and productivity at work: Does what you do matter?," Labour Economics, Elsevier, vol. 46(C), pages 150-165.
  • Handle: RePEc:eee:labeco:v:46:y:2017:i:c:p:150-165
    DOI: 10.1016/j.labeco.2017.05.001
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    References listed on IDEAS

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    1. IPA’s weekly links
      by Jeff Mosenkis (IPA) in Chris Blattman on 2019-01-04 18:40:27

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    Cited by:

    1. Young-Il Kim & Dongyoung Kim, 2016. "Mental Health Cost Of Terrorism: Study Of The Charlie Hebdo Attack In Paris," Working Papers 1613, Research Institute for Market Economy, Sogang University.
    2. Janisch, Laura M., 2017. "Mental health assimilation of Australian immigrants," Ruhr Economic Papers 728, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Mendolia, Silvia & McNamee, Paul & Yerokhin, Oleg, 2018. "The Transmission of Mental Health within Households: Does One Partner's Mental Health Influence the Other Partner's Life Satisfaction?," IZA Discussion Papers 11431, Institute for the Study of Labor (IZA).
    4. Melisa Bubonya & Deborah A. Cobb-Clark & David C. Ribar, 2017. "The Bilateral Relationship between Depressive Symptoms and Employment Status," Melbourne Institute Working Paper Series wp2017n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. Carrino, Ludovico & Glaser, Karen & Avendano, Mauricio, 2018. "Later Pension, Poorer Health? Evidence from the New State Pension Age in the UK," MPRA Paper 87575, University Library of Munich, Germany.

    More about this item

    Keywords

    Mental health; Presenteeism; Absenteeism; Work productivity;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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