Bounding the causal effect of unemployment on mental health

Abstract

"An important, yet unsettled, question for public health policy is whether unemployment causally impacts on mental health. The recent literature produces ambiguous findings likely due to differences in data, methods, and institutional settings. Taking a more general approach, we contribute the first nonparametric bounds analysis and apply the same research design to four countries with different institutional settings - Australia, Germany, the UK, and the US. Relying on fairly weak and partially testable assumptions, our paper shows that unemployment has a significant negative effect on mental health in all countries. The effect is significant for both men and women, and already materialises for short periods of unemployment. Public policy should hence focus on the early prevention of mental health problems among the unemployed." (Author's abstract, IAB-Doku) ((en))

Cite article

Cygan-Rehm, K., Kühnle, D. & Oberfichtner, M. (2016): Bounding the causal effect of unemployment on mental health. Nonparametric evidence from four countries. (LASER discussion papers 97), Erlangen, 46 p.