The Effect of Psychological Distress on Wage and Labour Market Participation in Australia: A Longitudinal Analysis Using 8 Annual Waves of the HILDA Cohort

Natalija Isailovic
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Natalija Isailovic: Monash University

Warwick-Monash Economics Student Papers from Warwick Monash Economics Student Papers

Abstract: This paper investigates the impact of psychological distress on hourly wages and labour market participation within the Australian population, focusing on gender differences. The findings indicate that psychological distress significantly affects labour market outcomes, with varying effects based on gender and mental health status. Specifically, psychological distress significantly decreased hourly wages for healthy males and unhealthy females. An increase in labour market participation amongst mentally unhealthy males and both healthy and unhealthy females was also found. The research utilised data from biennial waves between 2007 and 2021, sourced from the Household, Income and Labour Dynamics in Australia (HILDA) survey.

Keywords: Psychological distress; labour market participation; hourly wage; gender; Australia; HILDA JEL classifications: I12; I31; J17, J22 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:wrkesp:78

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