IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp18305.html

The Long Shadow of Labor Market Entry Conditions: Intergenerational Determinants of Mental Health

Author

Listed:
  • De Vera, Micole

    (Banco de España)

  • Garcia-Brazales, Javier

    (CEMFI)

  • Lin, Jiayi

    (Universitat Pompeu Fabra)

Abstract

What determines long-term mental health and its intergenerational correlation? Exploiting variation in unemployment rates upon labor market entry across Australian states and cohorts, we provide novel evidence that the mental health of daughters is affected by the labor market entry conditions of their parents. In particular, a one standard deviation shock to the unemployment rate upon parental labor market entry worsens daughters' mental health during adolescence by 11% of a standard deviation. This effect is accompanied by lower levels of satisfaction with their health, financial situation, safety, and overall life. A mediation analysis suggests that a sizable proportion (24%) of the impacts on the descendants' mental health is explained by the worse mental health of their parents at mid-life. We do not detect any systematic impact of parental labor market entry conditions among sons.

Suggested Citation

  • De Vera, Micole & Garcia-Brazales, Javier & Lin, Jiayi, 2025. "The Long Shadow of Labor Market Entry Conditions: Intergenerational Determinants of Mental Health," IZA Discussion Papers 18305, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18305
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp18305.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ayako Kondo, 2012. "Gender-specific labor market conditions and family formation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(1), pages 151-174, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Choi, Eleanor Jawon & Choi, Jaewoo & Son, Hyelim, 2020. "The long-term effects of labor market entry in a recession: Evidence from the Asian financial crisis," Labour Economics, Elsevier, vol. 67(C).
    2. Clémentine Garrouste & Mathilde Godard, 2016. "The lasting health impact of leaving school in a bad economy : Britons in the 1970s recession," Post-Print hal-01408637, HAL.
    3. Janet Currie & Hannes Schwandt, 2015. "Short and Long-Term Effects of Unemployment on Fertility," CEP Discussion Papers dp1387, Centre for Economic Performance, LSE.
    4. Johanna Catherine Maclean & Reginald Covington & Asia Sikora Kessler, 2016. "Labor Market Conditions At School-Leaving: Long-Run Effects On Marriage And Fertility," Contemporary Economic Policy, Western Economic Association International, vol. 34(1), pages 63-88, January.
    5. Clementine Garrouste & Mathilde Godard, 2016. "The Lasting Health Impact of Leaving School in a Bad Economy: Britons in the 1970s Recession," Health Economics, John Wiley & Sons, Ltd., vol. 25(S2), pages 70-92, November.
    6. Mattias Engdahl & Mathilde Godard & Oskar Nordström Skans, 2024. "Early Labor Market Prospects and Family Formation," Journal of Human Resources, University of Wisconsin Press, vol. 59(5), pages 1564-1598.
    7. Ayako KONDO, 2024. "Subtle Completed Fertility Recovery in Cohorts Who Entered the Labor Market during the Deep Recession in Japan," Discussion papers 24063, Research Institute of Economy, Trade and Industry (RIETI).
    8. James M. Raymo & Akihisa Shibata, 2017. "Unemployment, Nonstandard Employment, and Fertility: Insights From Japan’s “Lost 20 Years”," Demography, Springer;Population Association of America (PAA), vol. 54(6), pages 2301-2329, December.
    9. Johanna Maclean, 2014. "Does leaving school in an economic downturn impact access to employer-sponsored health insurance?," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-27, December.
    10. Andrew L. Owen, 2022. "The Fracking Boom, Labor Structure, and Adolescent Fertility," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(5), pages 2211-2231, October.
    11. Diana Alessandrini & Bharat Diwakar, 2023. "The Intergenerational Effects of Recessions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(4), pages 1060-1087, December.
    12. Garrett Anstreicher, 2020. "Family Formation and the Great Recession," Working Papers 20-42, Center for Economic Studies, U.S. Census Bureau.
    13. Jessamyn Schaller, 2013. "For richer, if not for poorer? Marriage and divorce over the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1007-1033, July.
    14. Ayako Kondo, 2016. "The effects of recessions on family formation," World of Labour, LISER, pages 248-248, March.
    15. Sjögren, Anna & Mattias , Mattias & Hall, Caroline & Holmlund, Helena & Lundin, Martin & Mühlrad, Hanna & Öckert, Björn, 2021. "Swedish children and youth during the COVID-19 pandemic," Working Paper Series 2021:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. Hara, Hiromi & Rodríguez-Planas, Núria, 2021. "Long-Term Consequences of Teaching Gender Roles: Evidence from Desegregating Industrial Arts and Home Economics in Japan," IZA Discussion Papers 14611, IZA Network @ LISER.
    17. Beatrice Brunner & Andreas Kuhn, 2014. "The impact of labor market entry conditions on initial job assignment and wages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 705-738, July.
    18. Engdahl, Mattias & Godard, Mathilde & Skans, Oskar N., 2019. "Entrer sur le marché du travail en période de récession : quels effets sur le parcours familial ?," CEPREMAP Working Papers (Docweb) 1903, CEPREMAP.
    19. Hershbein Brad J., 2012. "Graduating High School in a Recession: Work, Education, and Home Production," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-32, January.
    20. Hofmann, Barbara & Hohmeyer, Katrin, 2016. "The effect of the business cycle at college graduation on fertility," Economics of Education Review, Elsevier, vol. 55(C), pages 88-102.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp18305. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Fallak (email available below). General contact details of provider: https://edirc.repec.org/data/izaaalu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.