Frijters, Paul, Johnston, David W. and Shields, Michael A. (2014) The effect of mental health on employment: evidence from Australian panel data. Health Economics, 23 (9). pp. 1058-1071. ISSN 1057-9230
Full text not available from this repository.Abstract
To what extent does poor mental health affect employment outcomes? Answering this question involves multiple technical difficulties: two-way causality between health and work, unobservable confounding factors and measurement error in survey measures of mental health. We attempt to overcome these difficulties by combining 10 waves of high-quality panel data with an instrumental variable model that allows for individual-level fixed effects. We focus on the extensive margin of employment, and we find evidence that a one-standard-deviation decline in mental health reduces employment by 30 percentage points. Further investigations suggest that this effect is predominantly a supply rather than a demand-side response and is larger for older than young workers.
| Item Type: | Article |
|---|---|
| Official URL: | http://onlinelibrary.wiley.com/journal/10.1002/(IS... |
| Additional Information: | © 2014 John Wiley & Sons, Ltd. |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HC Economic History and Conditions R Medicine > RA Public aspects of medicine > RA0421 Public health. Hygiene. Preventive Medicine |
| JEL classification: | J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement |
| Date Deposited: | 07 Feb 2018 15:47 |
| Last Modified: | 26 Oct 2025 19:21 |
| URI: | http://eprints.lse.ac.uk/id/eprint/86676 |
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