Unemployment Expectations, Credit Commitments and Psychological Health
Using individual-level panel data, this paper examines the relationship between subjective unemployment expectations and psychological health. Individuals expecting to become unemployed within the next year exhibit higher rates of suffering from anxiety plus worse psychological health based on the General Health Questionnaire (GHQ) Caseness measure. We investigate the role of household credit commitments in this relationship. In our sample holding credit is associated with better psychological health. However, credit commitments worsen the relationship between expected unemployment and psychological health. The strongest effect is found for unsecured credit, with the average effect of expected unemployment on psychological health is approximately twice as severe among those with outstanding unsecured credit commitments.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD|
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/cfcm/index.aspx
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
- Andy Dickerson & Francis Green, 2009.
"Fears and realisations of employment insecurity,"
2009016, The University of Sheffield, Department of Economics, revised Nov 2009.
- Audrey Laporte, 2004. "Do economic cycles have a permanent effect on population health? Revisiting the Brenner hypothesis," Health Economics, John Wiley & Sons, Ltd., vol. 13(8), pages 767-779.
- Tefft, Nathan, 2011. "Insights on unemployment, unemployment insurance, and mental health," Journal of Health Economics, Elsevier, vol. 30(2), pages 258-264, March.
- García-Gómeza, P & Jones, A.M & Rice, N, 2008.
"Health effects on labour market exits and entries,"
Health, Econometrics and Data Group (HEDG) Working Papers
08/03, HEDG, c/o Department of Economics, University of York.
- Charles F. Manski, 2004. "Measuring Expectations," Econometrica, Econometric Society, vol. 72(5), pages 1329-1376, 09.
- Salm, Martin, 2009.
"Does Job Loss Cause Ill Health?,"
IZA Discussion Papers
4147, Institute for the Study of Labor (IZA).
- Petri Böckerman & Pekka Ilmakunnas, 2009.
"Unemployment and self-assessed health: evidence from panel data,"
John Wiley & Sons, Ltd., vol. 18(2), pages 161-179.
- Böckerman, Petri & Ilmakunnas, Pekka, 2007. "Unemployment and self-assessed health: Evidence from panel data," MPRA Paper 1798, University Library of Munich, Germany.
- Brown, Sarah & Taylor, Karl & Wheatley Price, Stephen, 2005. "Debt and distress: Evaluating the psychological cost of credit," Journal of Economic Psychology, Elsevier, vol. 26(5), pages 642-663, October.
- Andrew Clark, 2001.
"Unemployment As A Social Norm: Psychological Evidence from Panel Data,"
DELTA Working Papers
2001-17, DELTA (Ecole normale supérieure).
- Andrew E. Clark, 2003. "Unemployment as a Social Norm: Psychological Evidence from Panel Data," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 289-322, April.
- Salm, M., 2009. "Does job loss cause ill health?," Other publications TiSEM 314436db-9957-4912-ba47-9, Tilburg University, School of Economics and Management.
- Regina T. Riphahn, 1999.
"Income and employment effects of health shocks A test case for the German welfare state,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 12(3), pages 363-389.
- Riphahn, Regina T., 1998. "Income and Employment Effects of Health Shocks - A Test Case for the German Welfare State," IZA Discussion Papers 10, Institute for the Study of Labor (IZA).
- Charles, Kerwin Kofi & DeCicca, Philip, 2008. "Local labor market fluctuations and health: Is there a connection and for whom?," Journal of Health Economics, Elsevier, vol. 27(6), pages 1532-1550, December.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2002.
"How important is Methodology for the Estimates of the Determinants of Happiness?,"
Tinbergen Institute Discussion Papers
02-024/3, Tinbergen Institute.
- Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, 07.
- Sarah Bridges & Richard Disney, 2004. "Use of credit and arrears on debt among low-income families in the United Kingdom," Fiscal Studies, Institute for Fiscal Studies, vol. 25(1), pages 1-25, March.
- Green, Francis, 2011. "Unpacking the misery multiplier: How employability modifies the impacts of unemployment and job insecurity on life satisfaction and mental health," Journal of Health Economics, Elsevier, vol. 30(2), pages 265-276, March.
- Richard Disney & Sarah Bridges, .
"Debt and depression,"
06/02, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
- John Gathergood, 2012. "Debt and Depression: Causal Links and Social Norm Effects," Economic Journal, Royal Economic Society, vol. 122(563), pages 1094-1114, 09.
- Martin Browning & Anne Moller Dano & Eskil Heinesen, 2006. "Job displacement and stress-related health outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 15(10), pages 1061-1075.
- Schmitz, Hendrik, 2011. "Why are the unemployed in worse health? The causal effect of unemployment on health," Labour Economics, Elsevier, vol. 18(1), pages 71-78, January.
- Arrow, J. O., 1996. "Estimating the influence of health as a risk factor on unemployment: A survival analysis of employment durations for workers surveyed in the German Socio-Economic Panel (1984-1990)," Social Science & Medicine, Elsevier, vol. 42(12), pages 1651-1659, June.
- Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
When requesting a correction, please mention this item's handle: RePEc:not:notcfc:12/03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hilary Hughes)
If references are entirely missing, you can add them using this form.