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The impact of labour market shocks on mental health: evidence from the Covid-19 first wave

Author

Listed:
  • Francesco Bogliacino

    (Università Degli Studi Di Bergamo)

  • Cristiano Codagnone

    (Università Degli Studi Di Milano)

  • Frans Folkvord

    (Tilburg University)

  • Francisco Lupiáñez-Villanueva

    (Universitat Oberta de Catalunya)

Abstract

In this study, we estimate the effect of a negative labour market shock on individuals’ levels of stress, anxiety, and depression. We use a dataset collected during the first wave of the Covid-19 pandemic, on a representative sample of citizens from Italy, Spain, and the United Kingdom, interviewed on three occasions. We measure stress, anxiety and depression and labour shocks using validated scales. Our research design is a standard difference-in-differences model: we leverage the differential timing of shocks to identify the impact on mental health. In our estimations, a negative labour shock increases the measure of stress, anxiety, and depression by 16% of a standard deviation computed from the baseline.

Suggested Citation

  • Francesco Bogliacino & Cristiano Codagnone & Frans Folkvord & Francisco Lupiáñez-Villanueva, 2023. "The impact of labour market shocks on mental health: evidence from the Covid-19 first wave," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(3), pages 899-930, October.
  • Handle: RePEc:spr:epolit:v:40:y:2023:i:3:d:10.1007_s40888-023-00304-z
    DOI: 10.1007/s40888-023-00304-z
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    More about this item

    Keywords

    Stress; Anxiety; Depression; Negative economic shocks; Covid-19;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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