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Job loss and depression: The role of subjective expectations

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  • Mandal, Bidisha
  • Ayyagari, Padmaja
  • Gallo, William T.

Abstract

Although the importance of expectations is well documented in the decision-making literature, a key shortcoming of the empirical research into effects of involuntary job loss on depression is perhaps its neglect of the subjective expectations of job loss. Using data from the US Health and Retirement Study surveys we examine whether the impact of job loss on mental health is influenced by an individual's subjective expectations regarding future displacement. Our results imply that, among older workers in the age range of 55-65 year, subjective expectations are as significant predictors of depression as job loss itself, and ignoring them can bias the estimate of the impact of job loss on mental health.

Suggested Citation

  • Mandal, Bidisha & Ayyagari, Padmaja & Gallo, William T., 2011. "Job loss and depression: The role of subjective expectations," Social Science & Medicine, Elsevier, vol. 72(4), pages 576-583, February.
    • Handle: RePEc:eee:socmed:v:72:y:2011:i:4:p:576-583
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    Cited by:

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    2. Eve Caroli & Mathilde Godard, 2013. "Does Job Insecurity Deteriorate Health ? A Causal Approach for Europe," Working Papers 2013-13, Center for Research in Economics and Statistics.
    3. Gregory Colman & Dhaval Dave, 2018. "Unemployment and Health Behaviors over the Business Cycle: A Longitudinal View," Southern Economic Journal, John Wiley & Sons, vol. 85(1), pages 93-120, July.
    4. Thomas Hyclak & Chad Meyerhoefer & Larry Taylor, 2015. "Older Americans’ health and the Great Recession," Review of Economics of the Household, Springer, vol. 13(2), pages 413-436, June.
    5. Stefan Walter & Maria Glymour & Mauricio Avendano, 2014. "The Health Effects of US Unemployment Insurance Policy: Does Income from Unemployment Benefits Prevent Cardiovascular Disease?," PLOS ONE, Public Library of Science, vol. 9(7), pages 1-8, July.
    6. Freise, Diana & Schmitz, Hendrik & Westphal, Matthias, 2022. "Late-career unemployment and cognitive abilities," Journal of Health Economics, Elsevier, vol. 86(C).
    7. Eve Caroli & Mathilde Godard, 2016. "Does job insecurity deteriorate health?," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 131-147, February.
    8. Fu, Wei & Liu, Feng, 2019. "Unemployment insurance and cigarette smoking," Journal of Health Economics, Elsevier, vol. 63(C), pages 34-51.
    9. Jaime Ruiz-Tagle & Pablo Troncoso, 2018. "Labor Cost of Mental Health: Evidence from Chile," Working Papers wp468, University of Chile, Department of Economics.
    10. Dirlam, Jonathan & Zheng, Hui, 2017. "Job satisfaction developmental trajectories and health: A life course perspective," Social Science & Medicine, Elsevier, vol. 178(C), pages 95-103.
    11. Walter, Stefan & Glymour, Maria & Avendano, Mauricio, 2014. "The health effects of US unemployment insurance policy: does income from unemployment benefits prevent cardiovascular disease?," LSE Research Online Documents on Economics 58516, London School of Economics and Political Science, LSE Library.
    12. Anthony Lepinteur, 2021. "The asymmetric experience of gains and losses in job security on health," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2217-2229, September.
    13. Subin Park & Ahmad Hatim & Tian-Mei Si & Hong Jin Jeon & Manit Srisurapanont & Dianne Bautista & Shen-ing Liu & Hong Choon Chua & Jin Pyo Hong, 2015. "Stressful life events preceding the onset of depression in Asian patients with major depressive disorder," International Journal of Social Psychiatry, , vol. 61(8), pages 735-742, December.
    14. Sanna Huikari & Marko Korhonen, 2016. "The Impact of Unemployment on Well-Being: Evidence from the Regional Level Suicide Data in Finland," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(3), pages 1103-1119, September.
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    17. Mervin, Merehau Cindy & Frijters, Paul, 2014. "Is shared misery double misery?," Social Science & Medicine, Elsevier, vol. 107(C), pages 68-77.
    18. Wunder, Christoph & Zeydanli, Tugba, 2021. "The early costs of plant closures: Evidence on lead effects on workers’ subjective and objective outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 489-505.
    19. Schiele, Valentin & Schmitz, Hendrik, 2016. "Quantile treatment effects of job loss on health," Journal of Health Economics, Elsevier, vol. 49(C), pages 59-69.
    20. Ayyagari, Padmaja & Shane, Dan M., 2015. "Does prescription drug coverage improve mental health? Evidence from Medicare Part D," Journal of Health Economics, Elsevier, vol. 41(C), pages 46-58.

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