Losing more than a job: unemployment experience and the behavioural and social dimensions of mental wellbeing

Jorge Céspedes-Rico and Maria A. Davia

Applied Economic Analysis, 2026, 1-17

Abstract: PurposeThis paper aims to examine the association between the experience of unemployment and mental wellbeing and explores whether health-related behavioural and perceived social support deprivation account for part of the wellbeing gap between employed and unemployed individuals.Design/methodology/approachMicrodata from the 2023 Spanish Health Survey are used to compare individuals facing short- and long-term unemployment spells with those in employment. The unemployment-wellbeing association is split into direct and indirect components following the strategy described in Kesavayuth et al. (2022).FindingsUnemployment, particularly if long-term, is negatively associated with mental wellbeing. Health-related behavioural deprivation and perceived social support deprivation are both linked to unemployment and to lower wellbeing and account for part of the observed wellbeing gap associated with unemployment.Originality/valueThe paper provides nuanced evidence by distinguishing short- and long-term unemployment in Spain and estimating how much of the unemployment – wellbeing gap is accounted for by behavioural and social support deprivation. The findings suggest that labour market policies may benefit from considering these dimensions beyond income losses.

Keywords: Unemployment duration; Mental wellbeing; Health-related behaviours; Social support (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:aeapps:aea-02-2026-0058

DOI: 10.1108/AEA-02-2026-0058

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