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Feeling useless: the effect of unemployment on mental health in the great recession

This article documents a strong connection between unemployment and mental disorders using data from the Spanish He ... Show more
This article documents a strong connection between unemployment and mental disorders using data from the Spanish Health Survey. [The authors] exploit the collapse of the construction sector to identify the causal effect of job loss. [The] results suggest that an increase of the unemployment rate by 10 per cent due to collapse of the sector raised mental disorders in the affected population by three per cent. [The authors] argue that the large size of this effect responds to the fact that the construction sector was at the centre of the macroeconomic shock. As a result, workers exposed to the negative employment shock faced very low chances of re-entering employment. [The authors] show that this led to long unemployment spells, hopelessness and feelings of uselessness.
Published abstract reprinted by permission of the copyright owner. Show less

Authors: Farre, Lidia; Fasani, Francesco; Mueller, Hannes

Date: 2015

Geographic subjects: Spain; Europe

Resource type: Report, paper or authored book

Series name: IZA discussion paper

Subjects: Outcomes; Employment; Economics ... [+] Show more