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Job displacement and the mental health of households: Burden sharing counteracts spillover

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  • Zhao, Yuejun

Abstract

In this paper, I investigate the mental health effects of job displacement in 1-adult and 2-adult households. In a 1-adult household, if a worker loses a job unexpectedly, significant mental health deterioration can become manifest. In a 2-adult household, the deterioration may be less severe for the displaced worker due to burden and risk sharing with the partner. However, in this 2-adult household, there exists the additional risk of the partner’s unemployment, which could be detrimental to the worker’s mental health. I compare the overall burden in 1- and 2-adult households and find no statistically significant difference. This follows because the distress associated with the partner’s displacement is offset by the lower distress upon own displacement. Regarding gender differences, I show that job displacement upsets male and female workers for different reasons and to different extents depending on partnership status. These results offer fresh insights into unemployment shocks, the crucial role of partner support, and how the gender gap in mental health can be linked to household structure.

Suggested Citation

  • Zhao, Yuejun, 2023. "Job displacement and the mental health of households: Burden sharing counteracts spillover," Labour Economics, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:labeco:v:81:y:2023:i:c:s0927537123000155
    DOI: 10.1016/j.labeco.2023.102340
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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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