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Does labour protection influence mental-health responses to employment shocks? Evidence on older workers in Europe

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  • Di Novi, Cinzia
  • Paruolo, Paolo
  • Verzillo, Stefano

Abstract

This paper investigates if and how Employment Protection Legislation (EPL) influences mental-health responses to older workers’ job disruptions in Europe. It exploits labour market shocks during the first wave of the COVID-19 pandemic, and it is based on European data from the SHARE survey, in which each country is characterised by a different level of EPL. The analysis controls for workers’ individual characteristics and other contextual factors via propensity score matching. Results show that mental-health distress following job disruptions depends on the level of EPL, with significantly higher distress in countries in which EPL is more binding, especially among individuals with a lower education level. These findings suggest to consider the costs and benefits of mitigating measures for European countries with a high EPL, especially for older citizens with disadvantaged backgrounds.

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  • Di Novi, Cinzia & Paruolo, Paolo & Verzillo, Stefano, 2023. "Does labour protection influence mental-health responses to employment shocks? Evidence on older workers in Europe," Economic Modelling, Elsevier, vol. 126(C).
    • Handle: RePEc:eee:ecmode:v:126:y:2023:i:c:s0264999323002183
    DOI: 10.1016/j.econmod.2023.106406
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    2. Moscone, Francesco & Tosetti, Elisa & Vittadini, Giorgio, 2024. "The role of economic news in predicting suicides," Economics & Human Biology, Elsevier, vol. 55(C).
    3. Stankov, Petar, 2024. "Will voters polarize over pandemic restrictions? Theory and evidence from COVID-19," Economic Modelling, Elsevier, vol. 136(C).

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    More about this item

    Keywords

    Job disruption; Mental health; Employment Protection Legislation; COVID-19;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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