The Impact of Job Loss on Mental Health During the Covid-19 Crisis: Evidence from Tunisia

Khaled Nasri (), Mohamed Ben Abdallah and Fethi Amri
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Khaled Nasri: University of Tunis El Manar
Mohamed Ben Abdallah: University of Carthage, Tunisia
Fethi Amri: University of Gabès, Tunisia

No 1599, Working Papers from Economic Research Forum

Abstract: This study investigates the impact of job loss on the mental health of individuals in Tunisia during the COVID-19 crisis using the counterfactual decomposition technique and the potential outcome approach. We begin by calculating mental health indicators for all the individuals included in the sample based on the WHO Five Well-Being Index. We then group individuals into two sub-populations: the first group included those who had lost their jobs and the second group included individuals whose status in the labor market had remained unchanged. Afterward, we use the Blinder and Oaxaca decomposition to explain the mean difference in the mental health scores between the two groups and determine the factors contributing to this difference. Our empirical results identify symptoms of depressed mood, decreased energy, and loss of interest in several individuals. Based on these three symptoms, we are able to classify individuals into three types of depression: mild, moderate, and severe. In addition, it appears that job loss had significantly contributed to the worsening mental health of the individuals.

Pages: 24
Date: 2022-11-20, Revised 2022-11-20
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Published by The Economic Research Forum (ERF)

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