Feeling useless: the effect of unemployment on mental health in the Great Recession

This article documents a strong connection between unemployment and mental distress using data from the Spanish National Health Survey. We exploit the collapse of the construction sector to identify the causal effect of job losses in different segments of the Spanish labor market. Our results sugges...

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Detalhes bibliográficos
Autores: Farré, Lídia, Fasani, Francesco, Mueller, Hannes
Formato: artículo
Estado:Versión publicada
Fecha de publicación:2018
País:España
Recursos:Universidad de Barcelona
Repositorio:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/127735
Acesso em linha:https://hdl.handle.net/2445/127735
Access Level:acceso abierto
Palavra-chave:Salut mental
Atur
Política d'ocupació
Crisi econòmica, 2008-2009
Treballadors de la construcció
Psicologia del treball
Mental health
Unemployment
Manpower policy
Global Financial Crisis, 2008-2009
Construction workers
Industrial psychology
Descrição
Resumo:This article documents a strong connection between unemployment and mental distress using data from the Spanish National Health Survey. We exploit the collapse of the construction sector to identify the causal effect of job losses in different segments of the Spanish labor market. Our results suggest that an increase of the unemployment rate by 10 percentage points due to the breakdown in construction raised reported poor health and mental disorders in the affected population by 3 percentage points, respectively. We argue that the size of this effect responds to the fact that the construction sector was at the center of the economic recession. As a result, workers exposed to the negative labor demand shock faced very low chances of re-entering employment. We show that this led to long unemployment spells, stress, hopelessness, and feelings of uselessness. These effects point towards a potential channel for unemployment hysteresis.