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A Structural Analysis of Mental Health and Labor Market Trajectories

Author

Listed:
  • Jolivet, Grégory

    (University of Bristol)

  • Postel-Vinay, Fabien

    (University College London)

Abstract

We conduct a joint dynamic analysis of individual labor market and mental health outcomes. We allow for a two-way interaction between work and mental health. We model selection in and out of employment as well as between jobs on a labor market with search frictions, where we account for the level of exposure to stress in each job using data on occupational health contents. We estimate our model on British data from Understanding Society combined with information from O*NET. We produce structural estimates of health dynamics as a function of job characteristics and of the effects of health and of job stress content on labor market decisions. We use our model to quantify the effects of job loss or health shocks that can propagate over the life cycle through both health and work channels. We also estimate the (large) values workers attach to health, employment or non-stressful jobs. Lastly, we investigate the consequences of structural labor market changes by evaluating the impact on health, employment and inequality of changes in the distribution of job health contents.

Suggested Citation

  • Jolivet, Grégory & Postel-Vinay, Fabien, 2020. "A Structural Analysis of Mental Health and Labor Market Trajectories," IZA Discussion Papers 13518, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp13518
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    References listed on IDEAS

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    Cited by:

    1. Joe Spearing, 2024. "The effect of retirement eligibility on mental health in the United Kingdom: Heterogeneous effects by occupation," Health Economics, John Wiley & Sons, Ltd., vol. 33(8), pages 1621-1648, August.
    2. Bíró, Anikó & Elek, Péter, 2025. "Firm quality and health maintenance," Journal of Health Economics, Elsevier, vol. 103(C).
    3. Chaoran Chen & Zhigang Feng & Jiaying Gu, 2025. "Health, Health Insurance, And Inequality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 66(1), pages 107-141, February.
    4. Goetz, Daniel, 2023. "Telemedicine competition, pricing, and technology adoption: Evidence from talk therapists," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    5. 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.

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    Keywords

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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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