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No gain in pain: psychological well-being, participation, and wages in the BHPS

Elena Lagomarsino and Alessandro Spiganti

The European Journal of Health Economics, 2020, vol. 21, issue 9, No 8, 1375-1389

Abstract: Abstract Accounting for endogeneity, unobserved heterogeneity, and sample selection in an unified framework, we investigate the effect of psychological well-being on wages and labour market participation using a panel from the British Household Panel Survey. We find the effect of psychological well-being on labour market outcomes to differ across gender. In particular, psychological distress significantly reduces participation across genders, but, conditional on participation, has a significant negative effect on hourly wages only in the female sample.

Keywords: Self-assessed mental health; GHQ; Sample selection; Endogeneity; Social support network; BHPS; I10; C23; H51 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s10198-020-01234-4

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