A family affair: job loss and the mental health of spouses and adolescents

Examines the impact of involuntary job loss on the mental health of family members. Abstract This study examines the impact of involuntary job loss on the mental health of family members. Estimates from fixed-effects panel data models, using panel data for Australia, provide little evidence of any negative spillover effect on the mental health of husbands as a result of their wives\u27 job loss. The mental well-being of wives, however, declines following their husbands\u27 job loss, but only if that job loss results in a sustained period of non-employment or if the couple experienced financial hardship or relationship strain prior to the husband\u27s job loss. A negative effect of parental job loss on the mental health of co-resident adolescent children is also found, but appears to be restricted to girls

Mental health and productivity at work: does what you do matter?

Much of the economic cost of mental illness stems from workers’ reduced productivity. Using nationally representative panel data we analyze the links between mental health and two alternative workplace productivity measures – absenteeism and presenteeism (i.e., lower productivity while attending work) – explicitly allowing these relationships to be moderated by the nature of the job itself. We find that absence rates are approximately five percent higher among workers who report being in poor mental health. Moreover, job conditions are related to both presenteeism and absenteeism even after accounting for workers’ self-reported mental health status. Job conditions are relatively more important in understanding diminished productivity at work if workers are in good rather than poor mental health. The effects of job complexity and stress on absenteeism do not depend on workers’ mental health, while job security and control moderate the effect of mental illness on absence days

The bilateral relationship between depressive symptoms and employment status

This paper analyzes the bilateral relationship between depressive symptoms and employment status. We find that severe depressive symptoms are partially a consequence of economic inactivity. The incidence of depressive symptoms is higher if individuals have been out of a job for an extended period. Men’s mental health falls as they exit the labor force, while women’s worsens only after they have been out of the labor force for a period of time. Entering unemployment is also associated with a substantial deterioration in mental health, particularly for men. We also find that severe depressive symptoms, in turn, lead to economic inactivity. Individuals are less likely to be labor force participants or employed if they experience severe depressive symptoms. Men’s probability of being unemployed rises dramatically with the onset of depressive symptoms; women’s unemployment is increased by protracted depressive symptoms

The Great Recession and Children’s Mental Health in Australia

This paper analyzes the effects of ‘shocks’ to community-level unemployment expectations, induced by the onset of the Great Recession, on children’s mental well-being. The Australian experience of the Great Recession represents a unique case study as despite little change in actual unemployment rates, levels of economic uncertainty grew. This affords us the ability to examine the effects of shocks to economic expectations independent of any actual changes to economic conditions. We draw on and link data from multiple sources, including a longitudinal cohort study of children, a consumer sentiment survey and data on local economic conditions. Using our purpose-built data set, we estimate difference-in-differences models to identify plausibly causal effects. We find, for boys, there is no detectable effect of community-level unemployment expectations shocks on mental health. For girls, however, there are modest increases in mental health problems and externalizing behaviors, as measured by the Strengths and Difficulties Questionnaire. We additionally find no discernable change in mother’s psychological distress as a result of expectations shocks. These results are stable after controlling for actual labor market conditions

Pathways of Disadvantage: Unpacking the Intergenerational Correlation in Welfare

Our goal is to investigate the pathways that link welfare receipt across generations. We undertake a mediation analysis in which we not only calculate the intergenerational correlation in welfare, but also quantify the portion of that correlation that operates through key mechanisms. Our data come from administrative welfare records for young people (aged 23–26) and their parents over nearly two decades which have been linked to survey responses from young people at age 18. The mediators we consider jointly explain nearly a third (32.2 percent) of the intergenerational correlation in welfare receipt. The primary mechanism linking welfare receipt across generations is the failure to complete high school. Adolescents in welfare-reliant families experience more disruptions in their schooling (e.g., school changes and residential mobility, expulsions and suspensions) and receive less financial support from their families both of which impact on their chances of completing high school and avoiding the welfare roll. Young people’s risk-taking behavior (smoking, illicit drug use, delinquency and pregnancy) is also a key mechanism underpinning intergenerational welfare reliance. Physical and mental health, work-welfare attitudes and academic achievement, in contrast, have a more modest role in transmitting welfare receipt across generations

The reciprocal relationship between depressive symptoms and employment status

This paper analyzes the reciprocal lagged relationship between depressive symptoms and employment status. We find that severe depressive symptoms contribute to a 25.6% increase in subsequent non-employment rates, a 20.7% increase in non-participation rates and 34.2% increase in unemployment rates, for men. Similar, although weaker, marginal effects are found for women. However, we find no evidence for men and only limited evidence for women that unemployment, non-employment, or non-participation raises the risks of severe depressive symptoms. We observe an impact of labor market status on depressive symptoms only when using point-in-time measures

Job loss and the mental health of spouses and adolescent children

Panel data from the Household, Income and Labour Dynamics in Australia Survey are used to examine the impact of involuntary job loss on the mental health of spouses and adolescent children. Estimates from fixed effects models show that the mental health of women (but not men) declines following a spouse’s job loss, but only if that job loss results in a sustained period of non-employment or if the couple experienced prior financial hardship or relationship strain. A negative effect of parental job loss on the mental health of adolescent children is also found but is restricted to girls. JEL Classification: I31, J10, J65

The Great Recession and children's mental health in Australia

This paper analyzes the effects of "shocks" to community-level unemployment expectations, induced by the onset of the Great Recession, on children's mental well-being. The Australian experience of the Great Recession represents a unique case study as despite little change in actual unemployment rates, levels of economic uncertainty grew. This affords us the ability to examine the effects of shocks to economic expectations independent of any actual changes to economic conditions. We draw on and link data from multiple sources, including several waves of the Longitudinal Study of Australian Children (2004⁻2010), a consumer sentiment survey, and data on local economic conditions. Using our purpose-built data set, we estimate difference-in-differences models to identify plausibly causal effects. We find, for boys, there is no detectable effect of community-level unemployment expectations shocks on mental health. For girls, however, there are modest increases in mental health problems and externalizing behaviors, as measured by the Strengths and Difficulties Questionnaire (SDQ). We additionally find no discernible change in mother's psychological distress as a result of expectations shocks. These results are stable after controlling for actual labor market conditions