The Effects of Mass Layoffs on Mental Health

Christine Le Clainche () and Pascale Lengagne ()
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Christine Le Clainche: Lille University, Lille économie Management, UMR CNRS 9221

No DT78, Working Papers from IRDES institut for research and information in health economics

Abstract: This article assesses the effects of mass layoffs on the mental health of workers remaining in plants after layoffs, using a French survey merged with administrative health insurance data covering the period 2010–2013. We rely on the consumption of psychotropic drugs prescribed by doctors as an indicator of mental health. Results show that mass layoffs induce a sizeable rise in the use of psychotropic drugs amongst job stayers: we measure an increase of 41% in psychotropic drug consumption rates amongst them after displacement, as compared with the pre-displacement period. We find evidence for a social gradient whereby employees belonging to the lowest socio-economic are more affected by the adverse effect of mass layoffs on their mental health, leading to psychotropic drug consumption, than those in the highest socio­-economic groups.

Keywords: Mass layoffs; Downsizing; Mental health; Psychotropic drug prescriptions (search for similar items in EconPapers)
JEL-codes: I10 J6 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2019-05, Revised 2019-05
New Economics Papers: this item is included in nep-eur, nep-hea and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://www.irdes.fr/english/working-papers/078-th ... on-mental-health.pdf First version, 2019

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Persistent link: https://EconPapers.repec.org/RePEc:irh:wpaper:dt78

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