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Effects of unemployment insurance duration on mental and physical health

Author

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  • Ahammer, Alexander
  • Packham, Analisa

Abstract

Using administrative data for Upper Austrian workers from 2003–2013, we show that a 9-week extension in unemployment insurance (UI) duration increases nonemployment length by 4 days, on average, and impacts worker physical and mental health. These effects vary by gender. Specifically, we find that female workers eligible for an additional 9 weeks of UI benefits reduce opioid and antidepressant prescriptions by 0.5 percentage points (50%) and 0.9 percentage points (11%), respectively. Moreover, we find some evidence of beneficial within-household spillovers for young children. For male workers, we find little evidence of health effects of extending UI benefit duration. We posit that these differential effects are driven by a combination of income and occupational changes that also vary by gender.

Suggested Citation

  • Ahammer, Alexander & Packham, Analisa, 2023. "Effects of unemployment insurance duration on mental and physical health," Journal of Public Economics, Elsevier, vol. 226(C).
    • Handle: RePEc:eee:pubeco:v:226:y:2023:i:c:s0047272723001780
    DOI: 10.1016/j.jpubeco.2023.104996
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    Cited by:

    1. Ahammer, Alexander & Glogowsky, Ulrich & Halla, Martin & Hener, Timo, 2023. "The Parenthood Penalty in Mental Health: Evidence from Austria and Denmark," IZA Discussion Papers 16459, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Unemployment insurance; Health; Opioids;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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