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Survivors' Mental Health and the Protective Role of Income Stability

Itzik Fadlon, Astrid Sophie Fugleholm and Torben Heien Nielsen

American Economic Review: Insights, 2026, vol. 8, issue 2, 265-84

Abstract: We use administrative records on the universe of Danish households to characterize survivors' mental health following their spouse's death. We provide visually clear evidence for the immediate, large, and lingering adverse impacts and focus on studying the role of income security in driving the immediate effects. We find that, for both males and females, a large share of the spike in the take-up of mental health medication upon spousal death can be explained by the income loss imposed by the shock. Our results imply that safety net policies can improve survivors' mental health via the immediate liquidity they provide.

JEL-codes: D12 D91 G51 H55 I12 I38 J16 (search for similar items in EconPapers)
Date: 2026
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Working Paper: Survivors’ Mental Health and the Protective Role of Income Stability (2026) Downloads
Working Paper: Survivors' Mental Health and the Protective Role of Income Stability (2025) Downloads
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DOI: 10.1257/aeri.20250006

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