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Long-term effects of job displacement on earnings and mental health: Evidence from population-wide administrative data

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  • Tsai, Yung-Yu
  • Huang, Po-Chun
  • Yang, Tzu-Ting

Abstract

This paper analyzes the impacts of job displacement on earnings and mental health in Taiwan. Findings reveal an immediate 67%–68% earnings loss after displacement, with incomplete recovery after a decade. Mental health suffers in the long term, with 15%–16% more outpatient visits and 57%–62% higher medical costs.

Suggested Citation

  • Tsai, Yung-Yu & Huang, Po-Chun & Yang, Tzu-Ting, 2024. "Long-term effects of job displacement on earnings and mental health: Evidence from population-wide administrative data," Economics Letters, Elsevier, vol. 238(C).
    • Handle: RePEc:eee:ecolet:v:238:y:2024:i:c:s016517652400171x
    DOI: 10.1016/j.econlet.2024.111688
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    More about this item

    Keywords

    Job displacement; Earning loss; Mental health;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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