THE EFFECT OF WORK STATUS AND WORKING CONDITIONS ON MENTAL HEALTH IN FOUR OECD COUNTRIES

Abstract

This study aims to assess empirically whether being employed or returning to work is beneficial for all in terms of mental health, especially for those who already suffer from a longstanding illness or disability. We use longitudinal surveys from Australia, Canada, Switzerland and the UK to estimate panel data models that link decisions regarding labour market choices to health developments. To allow for state dependence of mental health, a dynamic panel model is used. The longitudinal analysis shows that non-employment generally is worse for mental health than working. The mental-health payoff to employment varies depending on the type of employment contract and working conditions. In particular, the mental health benefits for inactive individuals who obtain a non-standard job appear to be smaller than for those moving into standard employment arrangements, even after controlling for pre-existing mental health problems.

Keywords

Health working conditions models with panel data

Get full access to this article

View all access options for this article.

References

Adam, M.I. and Flatau, P. (2005), `Job insecurity and mental health outcomes: an analysis using waves 1 and 2 of HILDA', paper prepared for the Australian Social Policy conference.

Bardasi, E. , Francesconi, M. (2004), `The effect of non-standard employment on mental health in Britain', Social Science and Medicine, 58, pp. 1671-88.

Clark, A.E. (2003), `Unemployment as a social norm: psychological evidence from panel data', Journal of Labor Economics, 21, 2, pp. 323-51.

Clark, A. , Gerogellis, Y. and Sanfey, P. (2001), `Scarring: the psychological impact of past unemployment' , Economica, 68, pp. 221-41.

Datta Gupta, N. and Kristensen, N. (2008), `Work environment satisfaction and employee health: panel evidence from Denmark, France and Spain, 1994-2001', European Journal of Health Economics, 9, 1, pp. 51-61.

Dockery, A.M. (2006), `Mental health and labour force status: panel estimates with four waves of HILDA', CLMR Discussion Paper Series 06/1.

Ferrie, J.E. , Shipley, M.J. , Newman, K. , Stansfeld, S.A. and Marmot, M. (2005), `Self-reported job insecurity and health in the Whitehall II study: potential explanations of the relationship', Social Science and Medicine, 60, 7, pp. 1593-602.

Ferrie, J.E. , Shipley, M.J. , Stansfeld, S. and Marmot, M.G. (2002), `Effects of chronic job insecurity and change in job security on self-reported health, minor psychiatric morbidity, physiological measures and health-related behaviours in British civil servants: the Whitehall II Study', Epidemiology and Community Health, 56, 6, pp. 450-4.

Fischer, J. and Souse-Poza, A. (2006), `Does job satisfaction improve health? New evidence using panel data and objective measures of health', St. Gallen Labour Institute Discussion paper 110.

10.

Gash, V. , Mertens, A. and Romeu Gordo, L. (2006), `Are fixed-term jobs bad for your health? A comparison of West-Germany and Spain", IAB discussion Paper 8/2006.

11.

Grossman, M. (1972), `On the concept of health capital and the demand for health', Journal of Political Economy, 80, pp. 223-55.

12.

Jahoda, M. (1982), Employment and Unemployment: A Social-Psychological Analysis, Cambridge, Cambridge University Press.

13.

Karasek, R. (1979), `Job demands, job decision latitude and mental strain: implications for job redesign', Administrative Science Quarterly, 24, pp. 285-306.

14.

Oecd (2003), Transforming Disability into Ability. Policies to Promote Work and Income Security for Disabled People, Paris, OECD Publications.

15.

Plaisier, I. , De Bruijn, J.G. , De Graaf, R. , Ten Have, M. , Beekman, A.T.F. and Penninx, B.W.J.H. (2007), `The contribution of working conditions and social support to the onset of depressive and anxiety disorders among male and female employees', Social Science and Medicine , 64, pp. 401-10.

16.

Shields, M.A. and Wheatley Price, S. (2005), `Exploring the economic and social determinants of psychological well-being and perceived social support in England', Journal of the Royal Statistical Society, Series A, 168, pp. 513-38.

17.

Siegrist, J. (1996), `Adverse health effects of high-effort/lowreward conditions', Journal of Occupational Health Psychology, 1, pp. 27-41.

18.

Stansfeld, S.A. , Fuhrer, R. , Shipley, J. and Marmot, M.G. (1999),