The Causal Impact of Fear of Unemployment on Psychological Health

Arndt Reichert and Harald Tauchmann

No 266, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: We analyze the effect of job insecurity on psychological health. We extend the group of people being affected to employees who have insecure jobs to account for a broader measure of the mental health consequences of potential unemployment. Using panel data with staff reductions in the company as an exogenous source of job insecurity, we find that an increase in fear of unemployment substantially decreases the mental health status of employees. Quantile regression results yield particularly strong effects for individuals of already poor mental health.

Keywords: Fear of unemployment; mental health; job insecurity; labor market dynamics (search for similar items in EconPapers)
JEL-codes: I10 I18 J28 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (34)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:266

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