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The Bilateral Relationship between Depressive Symptoms and Employment Status

Author

Listed:
  • Melisa Bubonya

    (Melbourne Institute: Applied Economic and Social Research, the University of Melbourne)

  • Deborah A. Cobb-Clark

    (School of Economics, The University of Sydney; Institute for the Study of Labor (IZA); and ARC Centre of Excellence for Children and Families over the Life Course)

  • David C. Ribar

    (Melbourne Institute: Applied Economic and Social Research, The University of Melbourne; Institute for the Study of Labor (IZA); and ARC Centre of Excellence for Children and Families over the Life Course)

Abstract

This paper analyzes the bilateral relationship between depressive symptoms and employment status. We find that severe depressive symptoms are partially a consequence of economic inactivity. The incidence of depressive symptoms is higher if individuals have been out of a job for an extended period. Men’s mental health falls as they exit the labor force, while women’s worsens only after they have been out of the labor force for a period of time. Entering unemployment is also associated with a substantial deterioration in mental health, particularly for men. We also find that severe depressive symptoms, in turn, lead to economic inactivity. Individuals are less likely to be labor force participants or employed if they experience severe depressive symptoms. Men’s probability of being unemployed rises dramatically with the onset of depressive symptoms; women’s unemployment is increased by protracted depressive symptoms.

Suggested Citation

  • Melisa Bubonya & Deborah A. Cobb-Clark & David C. Ribar, 2017. "The Bilateral Relationship between Depressive Symptoms and Employment Status," Melbourne Institute Working Paper Series wp2017n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2017n10
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    More about this item

    Keywords

    Mental health; unemployment; labor market status; HILDA survey; depressive symptoms; depression;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

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