Early Labor Market Origins of Long-Term Mental Health and its Intergenerational Correlation

Micole De Vera, Javier Garcia-Brazales and Jiayi Lin

EconStor Preprints from ZBW - Leibniz Information Centre for Economics

Abstract: What drives long-term mental health and its intergenerational correlation? Exploiting variation in unemployment rates upon labor market entry across Australian states and cohorts, we provide novel evidence of persistent effects on mental health two decades after labor market entry. We find that individuals exposed to a one percentage point higher unemployment rate at labor market entry relative to trend have 14% of a standard deviation worse mental health at ages 36–40. We further document an intergenerational impact of labor market entry conditions. Along the extensive margin, females more impacted by labor market entry conditions in terms of mental health increase completed fertility. Along the intensive margin, daughters whose parents experienced a one percentage point higher unemployment rate at entry have 18% of a standard deviation worse mental health during adolescence. Sons’ mental health is not impacted.

Keywords: Recession; Mental health; Well-being; Intergenerational correlation; Australia (search for similar items in EconPapers)
JEL-codes: E32 I14 J13 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-hea and nep-lab
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Working Paper: Early Labor Market Origins of Long-Term Mental Health and its Intergenerational Correlation (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:esprep:264274

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