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The impact of recent mental health changes on employment: new evidence from longitudinal data

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  • Sophie Mitra
  • Kristine Jones

Abstract

This study uses longitudinal data and four different measures of mental health to tease out the impact of psychiatric disorder onsets and recoveries on employment outcomes. Results suggest that developing a mental health problem leads to a significant increase in the probability of transitioning to non-employment, while a recovery increases the probability of return to work among the not employed with a mental health problem. No consistent effect was found on hours worked and earnings. Research and policy attention is needed with respect to early interventions such as job retention programmes to help workers with mental health problems remain employed as well as interventions that may lead to recovery and return to work. More research is needed especially with data and models that can differentiate between the effects of mental health onsets and recoveries on employment exit and return to work transitions.

Suggested Citation

  • Sophie Mitra & Kristine Jones, 2017. "The impact of recent mental health changes on employment: new evidence from longitudinal data," Applied Economics, Taylor & Francis Journals, vol. 49(1), pages 96-109, January.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:1:p:96-109
    DOI: 10.1080/00036846.2016.1192274
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    Cited by:

    1. Cheng, Zhiming & Wang, Ben Zhe & Jiang, Zhou & Taksa, Lucy & Tani, Massimiliano, 2020. "English Skills and Early Labour Market Integration: Evidence from Humanitarian Migrants in Australia," GLO Discussion Paper Series 672, Global Labor Organization (GLO).
    2. Björn Nilsson, 2017. "Parental depressive symptoms and the child labor-schooling nexus: evidence from Mexico," Working Papers DT/2017/06, DIAL (Développement, Institutions et Mondialisation).
    3. Ringdal, Charlotte & Rootjes, Frank, 2022. "Depression and labor supply: Evidence from the Netherlands," Economics & Human Biology, Elsevier, vol. 45(C).
    4. Ludovico Carrino & Karen Glaser & Mauricio Avendano, 2020. "Later retirement, job strain, and health: Evidence from the new State Pension age in the United Kingdom," Health Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 891-912, August.
    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.
    6. Mark L Bryan & Nigel Rice & Jennifer Roberts & Cristina Sechel, 2022. "Mental Health and Employment: A Bounding Approach Using Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(5), pages 1018-1051, October.
    7. Elena Lagomarsino & Alessandro Spiganti, 2020. "No gain in pain: psychological well-being, participation, and wages in the BHPS," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(9), pages 1375-1389, December.
    8. Bryan, M.; & Roberts, J.; & Sechel, C.;, 2019. "The Effect of Mental Health on Employment:Accounting for Selection Bias," Health, Econometrics and Data Group (HEDG) Working Papers 19/14, HEDG, c/o Department of Economics, University of York.
    9. Diby, Akissi S. & Lengagne, Pascale & Regaert, Camille, 2021. "Employment Vulnerability of People With Severe Mental Illness," Health Policy, Elsevier, vol. 125(2), pages 269-275.
    10. Cheng, Zhiming & Wang, Ben Zhe & Jiang, Zhou & Taksa, Lucy & Tani, Massimiliano, 2020. "English Skills and Early Labour Market Integration of Humanitarian Migrants," IZA Discussion Papers 13728, Institute of Labor Economics (IZA).
    11. Eliason, Marcus, 2023. "The financial situation before and after first-time psychiatric in-patient diagnosis of schizophrenia spectrum, bipolar, and major depressive disorder," Economics & Human Biology, Elsevier, vol. 49(C).
    12. Natasha V. Pilkauskas & Brian A. Jacob & Elizabeth Rhodes & Katherine Richard & H. Luke Shaefer, 2023. "The COVID Cash Transfer Study: The Impacts of a One‐Time Unconditional Cash Transfer on the Well‐Being of Families Receiving SNAP in Twelve States," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(3), pages 771-795, June.

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