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Mental Health and Labor Market Effects of Anticipating Job Loss

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  • Miele, Kai R.

Abstract

Exploiting future exposure to job termination in the UK, this paper finds that sharply increased job loss expectations before job termination significantly increase mental distress. This anticipation effect is largest in tight labor markets but does not spill over within couples. In contrast, anticipating job termination allows workers to switch positions without suffering unemployment. Leveraging variation in the industry-specific labor market tightness before the job termination, this paper shows that switching from a terminated position before its closure offsets over 70 percent of the negative labor market effects of the job termination, and mitigates its entire mental burden.

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  • Miele, Kai R., 2024. "Mental Health and Labor Market Effects of Anticipating Job Loss," CINCH Working Paper Series (since 2020) 82169, Duisburg-Essen University Library, DuEPublico.
    • Handle: RePEc:ajt:wcinch:82169
    DOI: 10.17185/duepublico/82169
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    More about this item

    Keywords

    job loss; anticipation; mental health; unemployment; JEL classification: D84; I18; J28; J63;
    All these keywords.

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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