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Unemployment and Mental Health: Some Evidence from Panel Data


  • Anders Bj�rklund


Microdata are used in this paper to analyze the effects of unemployment on mental health. The analysis is done in two steps. First, cross-section data of labor force participants are analyzed. It appears that the unemployed have worse mental health than the employed. Next, panel data are used to control for "fixed" effects, that is, unobserved omitted variables that are constant over time. The model is also specified to allow both the occurrence of and duration of unemployment to affect mental health. Then we cannot reject the hypothesis that there are no effects of unemployment on mental health. However, some sensitivity tests indicate that the precision of our estimates is rather low.

Suggested Citation

  • Anders Bj�rklund, 1985. "Unemployment and Mental Health: Some Evidence from Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 469-483.
  • Handle: RePEc:uwp:jhriss:v:20:y:1985:i:4:p:469-483

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    References listed on IDEAS

    1. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    2. Lillard, Lee A & Willis, Robert J, 1978. "Dynamic Aspects of Earning Mobility," Econometrica, Econometric Society, vol. 46(5), pages 985-1012, September.
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    4. Karl Ashworth & Martha Hill & Robert Walker, 1994. "Patterns of childhood poverty: New challenges for policy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 13(4), pages 658-680.
    5. Ham, John C & Rea, Samuel A, Jr, 1987. "Unemployment Insurance and Male Unemployment Duration in Canada," Journal of Labor Economics, University of Chicago Press, vol. 5(3), pages 325-353, July.
    6. Stevens, Ann Huff, 1994. "The Dynamics of Poverty Spells: Updating Bane and Ellwood," American Economic Review, American Economic Association, vol. 84(2), pages 34-37, May.
    7. Baker, Michael, 1997. "Growth-Rate Heterogeneity and the Covariance Structure of Life-Cycle Earnings," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 338-375, April.
    8. Hamilton, James D, 1989. "A New Approach to the Economic Analysis of Nonstationary Time Series and the Business Cycle," Econometrica, Econometric Society, vol. 57(2), pages 357-384, March.
    9. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
    10. Gottschald, Peter T, 1982. "Earnings Mobility: Permanent Change or Transitory Fluctuations," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 450-456, August.
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    12. Gottschalk, Peter & Moffitt, Robert A, 1994. "Welfare Dependence: Concepts, Measures, and Trends," American Economic Review, American Economic Association, vol. 84(2), pages 38-42, May.
    13. Thomas S. Coleman, 1989. "Unemployment Behavior: Evidence from the CPS Work Experience Survey," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 1-38.
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    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
    • I10 - Health, Education, and Welfare - - Health - - - General


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