IDEAS home Printed from https://ideas.repec.org/a/eee/ehbiol/v45y2022ics1570677x21001283.html
   My bibliography  Save this article

Depression and labor supply: Evidence from the Netherlands

Author

Listed:
  • Ringdal, Charlotte
  • Rootjes, Frank

Abstract

We estimate the relationship between depression and labor-market outcomes using data from the Longitudinal Internet studies for the Social Sciences (LISS) panel (2008 — 2018) from the Netherlands. The paper provides three main findings. First, depression is not associated with women’s labor market participation, but it is associated with their likelihood of having paid employment (conditional on being in the labor force). Second, depression is associated with men’s labor force participation, likelihood of having paid employment and likelihood of working full time. Third, severity of depression matters. More severe symptoms are associated with more adverse labor-market outcomes. In addition, we examine the mechanism behind the relationship between depression and labor market outcomes. We find that happiness, life satisfaction, and pessimistic beliefs about the future are partially mediating the effects.

Suggested Citation

  • Ringdal, Charlotte & Rootjes, Frank, 2022. "Depression and labor supply: Evidence from the Netherlands," Economics & Human Biology, Elsevier, vol. 45(C).
    • Handle: RePEc:eee:ehbiol:v:45:y:2022:i:c:s1570677x21001283
    DOI: 10.1016/j.ehb.2021.101103
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1570677X21001283
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ehb.2021.101103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Souvik Banerjee & Pinka Chatterji & Kajal Lahiri, 2017. "Effects of Psychiatric Disorders on Labor Market Outcomes: A Latent Variable Approach Using Multiple Clinical Indicators," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 184-205, February.
    2. Pinka Chatterji & Margarita Alegría & Mingshan Lu & David Takeuchi, 2007. "Psychiatric disorders and labor market outcomes: evidence from the National Latino and Asian American Study," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1069-1090.
    3. Alessia Forti & Chris Nas & Alex van Geldrop & Gerdien Franx & Ionela Petrea & Ype van Strien & Patrick Jeurissen, 2014. "Mental Health Analysis Profiles (MhAPs): Netherlands," OECD Health Working Papers 73, OECD Publishing.
    4. Mark L Bryan & Nigel Rice & Jennifer Roberts & Cristina Sechel, 2022. "Mental Health and Employment: A Bounding Approach Using Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(5), pages 1018-1051, October.
    5. Emily Oster, 2019. "Unobservable Selection and Coefficient Stability: Theory and Evidence," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 37(2), pages 187-204, April.
    6. Amy Finkelstein & Erzo F. P. Luttmer & Matthew J. Notowidigdo, 2013. "What Good Is Wealth Without Health? The Effect Of Health On The Marginal Utility Of Consumption," Journal of the European Economic Association, European Economic Association, vol. 11, pages 221-258, January.
    7. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of Psychiatric Disorders on Labor Market Outcomes," NBER Working Papers 5989, National Bureau of Economic Research, Inc.
    8. Vivian H. Hamilton & Philip Merrigan & Éric Dufresne, 1997. "Down and out: estimating the relationship between mental health and unemployment," Health Economics, John Wiley & Sons, Ltd., vol. 6(4), pages 397-406, July.
    9. Paul Frijters & David W. Johnston & Michael A. Shields, 2014. "The Effect Of Mental Health On Employment: Evidence From Australian Panel Data," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1058-1071, September.
    10. Alessia Forti, 2014. "Mental Health Analysis Profiles (MhAPs): Scotland," OECD Health Working Papers 74, OECD Publishing.
    11. Paul E. Greenberg & Andree-Anne Fournier & Tammy Sisitsky & Mark Simes & Richard Berman & Sarah H. Koenigsberg & Ronald C. Kessler, 2021. "The Economic Burden of Adults with Major Depressive Disorder in the United States (2010 and 2018)," PharmacoEconomics, Springer, vol. 39(6), pages 653-665, June.
    12. Farzin, Y.H., 2009. "The effect of non-pecuniary motivations on labor supply," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(4), pages 1236-1259, November.
    13. Bettina Siflinger & Michaela Paffenholz & Sebastian Seitz & Moritz Mendel & Hans-Martin von Gaudecker, 2021. "The COVID-19 Pandemic and Mental Health: Disentangling Crucial Channels," CRC TR 224 Discussion Paper Series crctr224_2021_271, University of Bonn and University of Mannheim, Germany.
    14. Bubonya, Melisa & Cobb-Clark, Deborah A. & Ribar, David C., 2019. "The reciprocal relationship between depressive symptoms and employment status," Economics & Human Biology, Elsevier, vol. 35(C), pages 96-106.
    15. Angelucci, Manuela & Bennett, Daniel M, 2021. "The Economic Impact of Depression Treatment in India," IZA Discussion Papers 14393, Institute of Labor Economics (IZA).
    16. Pinka Chatterji & Margarita Alegría & Mingshan Lu & David Takeuchi, 2007. "Psychiatric disorders and labor market outcomes: evidence from the National Latino and Asian American Study," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1069-1090, October.
    17. Strulik, Holger, 2019. "An economic theory of depression and its impact on health behavior and longevity," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 269-287.
    18. Alessia Forti, 2014. "Mental Health Analysis Profiles (MhAPs): Italy," OECD Health Working Papers 71, OECD Publishing.
    19. Victoria D. Ojeda & Richard G. Frank & Thomas G. McGuire & Todd P. Gilmer, 2010. "Mental illness, nativity, gender and labor supply," Health Economics, John Wiley & Sons, Ltd., vol. 19(4), pages 396-421, April.
    20. Lizhong Peng & Chad D. Meyerhoefer & Samuel H. Zuvekas, 2016. "The Short‐Term Effect of Depressive Symptoms on Labor Market Outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 25(10), pages 1223-1238, October.
    21. Elena Lagomarsino & Alessandro Spiganti, 2020. "No gain in pain: psychological well-being, participation, and wages in the BHPS," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(9), pages 1375-1389, December.
    22. Chatterji, Pinka & Alegria, Margarita & Takeuchi, David, 2011. "Psychiatric disorders and labor market outcomes: Evidence from the National Comorbidity Survey-Replication," Journal of Health Economics, Elsevier, vol. 30(5), pages 858-868.
    23. Ross, Catherine E. & Mirowsky, John, 2006. "Sex differences in the effect of education on depression: Resource multiplication or resource substitution?," Social Science & Medicine, Elsevier, vol. 63(5), pages 1400-1413, September.
    24. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    25. Sophie Mitra & Kristine Jones, 2017. "The impact of recent mental health changes on employment: new evidence from longitudinal data," Applied Economics, Taylor & Francis Journals, vol. 49(1), pages 96-109, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Germinario, Giuseppe & Amin, Vikesh & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2022. "What can we learn about the effect of mental health on labor market outcomes under weak assumptions? Evidence from the NLSY79," Labour Economics, Elsevier, vol. 79(C).
    2. Pinna Pintor, Matteo & Fumagalli, Elena & Suhrcke, Marc, 2024. "The impact of health on labour market outcomes: A rapid systematic review," Health Policy, Elsevier, vol. 143(C).
    3. Eliason, Marcus, 2023. "The financial situation before and after first-time psychiatric in-patient diagnosis of schizophrenia spectrum, bipolar, and major depressive disorder," Economics & Human Biology, Elsevier, vol. 49(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark L Bryan & Nigel Rice & Jennifer Roberts & Cristina Sechel, 2022. "Mental Health and Employment: A Bounding Approach Using Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(5), pages 1018-1051, October.
    2. Bryan, M.; & Roberts, J.; & Sechel, C.;, 2019. "The Effect of Mental Health on Employment:Accounting for Selection Bias," Health, Econometrics and Data Group (HEDG) Working Papers 19/14, HEDG, c/o Department of Economics, University of York.
    3. Elena Lagomarsino & Alessandro Spiganti, 2020. "No gain in pain: psychological well-being, participation, and wages in the BHPS," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(9), pages 1375-1389, December.
    4. Germinario, Giuseppe & Amin, Vikesh & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2022. "What can we learn about the effect of mental health on labor market outcomes under weak assumptions? Evidence from the NLSY79," Labour Economics, Elsevier, vol. 79(C).
    5. Bubonya, Melisa & Cobb-Clark, Deborah A. & Ribar, David C., 2017. "The Bilateral Relationship between Depressive Symptoms and Employment Status," IZA Discussion Papers 10653, Institute of Labor Economics (IZA).
    6. Eliason, Marcus, 2023. "The financial situation before and after first-time psychiatric in-patient diagnosis of schizophrenia spectrum, bipolar, and major depressive disorder," Economics & Human Biology, Elsevier, vol. 49(C).
    7. INUI Tomohiko & KAWAKAMI Atsushi & MA Xin Xin & ZHAO Meng, 2019. "Does Mental Health Affect Labor Market Outcomes? Evidence from a National Representative Survey in Japan," Discussion papers 19061, Research Institute of Economy, Trade and Industry (RIETI).
    8. Messel, Matt & Swensen, Isaac & Urban, Carly, 2023. "The effects of expanding access to mental health services on SS(D)I applications and awards," Labour Economics, Elsevier, vol. 81(C).
    9. Danusha Jayawardana & Brenda Gannon & Jenny Doust & Gita D. Mishra, 2023. "Excess healthcare costs of psychological distress in young women: Evidence from linked national Medicare claims data," Health Economics, John Wiley & Sons, Ltd., vol. 32(3), pages 715-734, March.
    10. Stéphane Mahuteau & Rong Zhu, 2016. "Crime Victimisation and Subjective Well‐Being: Panel Evidence From Australia," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1448-1463, November.
    11. Paul Frijters & David W. Johnston & Michael A. Shields, 2014. "The Effect Of Mental Health On Employment: Evidence From Australian Panel Data," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1058-1071, September.
    12. Diby, Akissi S. & Lengagne, Pascale & Regaert, Camille, 2021. "Employment Vulnerability of People With Severe Mental Illness," Health Policy, Elsevier, vol. 125(2), pages 269-275.
    13. Nafilyan, Vahé & Pabon, Mauricio Avendano & de Coulon, Augustin, 2021. "The Causal Impact of Depression on Cognitive Functioning: Evidence from Europe," IZA Discussion Papers 14049, Institute of Labor Economics (IZA).
    14. Thomas Barnay & Éric Defebvre, 2019. "Gender Differences in the Influence of Mental Health on Job Retention," LABOUR, CEIS, vol. 33(4), pages 507-532, December.
    15. Henri Salokangas, 2021. "Exploring the labor market consequences of psychiatric disorders: An event study approach," Discussion Papers 148, Aboa Centre for Economics.
    16. Monica Deza & Johanna Catherine Maclean & Keisha T. Solomon, 2020. "Local Access to Mental Healthcare and Crime," NBER Working Papers 27619, National Bureau of Economic Research, Inc.
    17. Johnston, David W. & Schurer, Stefanie & Shields, Michael A., 2011. "Evidence on the Long Shadow of Poor Mental Health across Three Generations," IZA Discussion Papers 6014, Institute of Labor Economics (IZA).
    18. Noonan, Kelly & Corman, Hope & Reichman, Nancy E., 2016. "Effects of maternal depression on family food insecurity," Economics & Human Biology, Elsevier, vol. 22(C), pages 201-215.
    19. Henri Salokangas, 2021. "Mental disorders and lifetime earnings," Discussion Papers 145, Aboa Centre for Economics.
    20. Deza, Monica & Maclean, Johanna Catherine & Solomon, Keisha, 2022. "Local access to mental healthcare and crime," Journal of Urban Economics, Elsevier, vol. 129(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ehbiol:v:45:y:2022:i:c:s1570677x21001283. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622964 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.