A Structural Analysis of Mental Health and Labor Market Trajectories

Grégory Jolivet () and Fabien Postel-Vinay
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Grégory Jolivet: University of Bristol

No 13518, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We conduct a joint dynamic analysis of individual labor market and mental health outcomes. We allow for a two-way interaction between work and mental health. We model selection in and out of employment as well as between jobs on a labor market with search frictions, where we account for the level of exposure to stress in each job using data on occupational health contents. We estimate our model on British data from Understanding Society combined with information from O*NET. We produce structural estimates of health dynamics as a function of job characteristics and of the effects of health and of job stress content on labor market decisions. We use our model to quantify the effects of job loss or health shocks that can propagate over the life cycle through both health and work channels. We also estimate the (large) values workers attach to health, employment or non-stressful jobs. Lastly, we investigate the consequences of structural labor market changes by evaluating the impact on health, employment and inequality of changes in the distribution of job health contents.

Keywords: job search; mental health; life cycle (search for similar items in EconPapers)
JEL-codes: I12 I14 J62 J64 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2020-07
New Economics Papers: this item is included in nep-hea, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published online in: Review of Economic Studies , 25 June 2024

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Working Paper: A Structural Analysis of Mental Health and Labor Market Trajectories (2020)
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