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The Causal Impact of Fear of Unemployment on Psychological Health

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  • Reichert, Arndt
  • Tauchmann, Harald

Abstract

We analyze the effect of job insecurity on psychological health. We extend the group of people being affected to employees who have insecure jobs to account for a broader measure of the mental health consequences of potential unemployment. Using panel data with staff reductions in the company as an exogenous source of job insecurity, we find that an increase in fear of unemployment substantially decreases the mental health status of employees. Quantile regression results yield particularly strong effects for individuals of already poor mental health.

Suggested Citation

  • Reichert, Arndt & Tauchmann, Harald, 2011. "The Causal Impact of Fear of Unemployment on Psychological Health," Ruhr Economic Papers 266, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:266
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    Cited by:

    1. Marcus, Jan, 2013. "The effect of unemployment on the mental health of spouses – Evidence from plant closures in Germany," Journal of Health Economics, Elsevier, vol. 32(3), pages 546-558.
    2. Hendrik Schmitz & Matthias Westphal, 2013. "Short- and Medium-Term Effects of Informal Care Provision on Health," SOEPpapers on Multidisciplinary Panel Data Research 569, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Jan Marcus, 2014. "Does Job Loss Make You Smoke and Gain Weight?," Economica, London School of Economics and Political Science, vol. 81(324), pages 626-648, October.
    4. Schmitz, Hendrik & Westphal, Matthias, 2015. "Short- and medium-term effects of informal care provision on female caregivers’ health," Journal of Health Economics, Elsevier, vol. 42(C), pages 174-185.
    5. Eve Caroli & Mathilde Godard, 2016. "Does job insecurity deteriorate health?," Health Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 131-147, February.
    6. Gutierrez, Italo A. & Michaud, Pierre-Carl, 2015. "Employer Downsizing and Older Workers' Health," IZA Discussion Papers 9140, Institute of Labor Economics (IZA).
    7. 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.
    8. Saqib Amin & Marko Korhonen & Sanna Huikari, 2023. "Unemployment and Mental Health: An Instrumental Variable Analysis Using Municipal-level Data for Finland for 2002–2019," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(3), pages 627-643, April.
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    10. Tajana Guberina & Ai Min Wang, 2021. "Entrepreneurial Leadership Impact on Job security and Psychological Well-being during the COVID-19 Pandemic: A conceptual review," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 6(6), pages 7-18, February.
    11. Jan Marcus;, 2012. "The effect of unemployment on the mental health of spouses - Evidence from plant closures in Germany," Health, Econometrics and Data Group (HEDG) Working Papers 12/17, HEDG, c/o Department of Economics, University of York.
    12. Pavlina R. Tcherneva, 2017. "Unemployment: The Silent Epidemic," Economics Working Paper Archive wp_895, Levy Economics Institute.
    13. Klemm, Marcus, 2012. "Job Security and Fertility: Evidence from German Reunification," Ruhr Economic Papers 379, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    14. Hendrik Schmitz & Matthias Westphal, 2013. "Short- and Medium-term Effects of Informal Care Provision on Health," Ruhr Economic Papers 0426, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    15. Jan Kleibrink, 2014. "Sick of Your Job?: Negative Health Effects from Non-optimal Employment," SOEPpapers on Multidisciplinary Panel Data Research 718, DIW Berlin, The German Socio-Economic Panel (SOEP).
    16. Italo A. Gutierrez & Pierre-Carl Michaud, 2017. "Whistle While You Work: Job Insecurity and Older Workers’ Mental Health in the United States," CIRANO Working Papers 2017s-21, CIRANO.
    17. Christian Bünnings & Jan Kleibrink & Jens Weßling, 2017. "Fear of Unemployment and its Effect on the Mental Health of Spouses," Health Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 104-117, January.
    18. Kárpáti, Daniel & Renneboog, Luc, 2021. "Corporate Financial Frictions and Employee Mental Health," Discussion Paper 2021-003, Tilburg University, Center for Economic Research.
    19. Pikos, Anna Katharina, 2018. "Work-related mental health problems increase with rising aggregate unemployment," Hannover Economic Papers (HEP) dp-639, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    20. Marcus Klemm, 2012. "Job Security and Fertility: Evidence from German Reunification," Ruhr Economic Papers 0379, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    21. Jan Kleibrink, 2014. "Sick of your Job? – Negative Health Effects from Non-Optimal Employment," Ruhr Economic Papers 0514, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    22. Nkechi S. Owoo & Monica P. Lambon-Quayefio, 2022. "Does Job Security Affect Fertility and Fertility Intentions in Ghana? Examining the Evidence," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 86-99, March.
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    25. Schiele, Valentin & Schmitz, Hendrik, 2016. "Quantile treatment effects of job loss on health," Journal of Health Economics, Elsevier, vol. 49(C), pages 59-69.

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    More about this item

    Keywords

    Fear of unemployment; mental health; job insecurity; labor market dynamics;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • 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

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