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Does labour protection influence mental-health responses to employment shocks? Evidence on older workers in Europe

Cinzia Di Novi, Paolo Paruolo and Stefano Verzillo

Economic Modelling, 2023, vol. 126, issue C

Abstract: This paper investigates if and how Employment Protection Legislation (EPL) influences mental-health responses to older workers’ job disruptions in Europe. It exploits labour market shocks during the first wave of the COVID-19 pandemic, and it is based on European data from the SHARE survey, in which each country is characterised by a different level of EPL. The analysis controls for workers’ individual characteristics and other contextual factors via propensity score matching. Results show that mental-health distress following job disruptions depends on the level of EPL, with significantly higher distress in countries in which EPL is more binding, especially among individuals with a lower education level. These findings suggest to consider the costs and benefits of mitigating measures for European countries with a high EPL, especially for older citizens with disadvantaged backgrounds.

Keywords: Job disruption; Mental health; Employment Protection Legislation; COVID-19 (search for similar items in EconPapers)
JEL-codes: I14 I18 J08 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:126:y:2023:i:c:s0264999323002183

DOI: 10.1016/j.econmod.2023.106406

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