The Causal Impact of Fear of Unemployment on Psychological Health

28 Pages Posted: 8 Jul 2011

See all articles by Arndt R. Reichert

Arndt R. Reichert

World Bank; Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Harald Tauchmann

Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Date Written: July 1, 2011

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

JEL Classification: I10, I18, J28

Suggested Citation

Reichert, Arndt Rudiger and Tauchmann, Harald, The Causal Impact of Fear of Unemployment on Psychological Health (July 1, 2011). Ruhr Economic Paper No. 266, Available at SSRN: https://ssrn.com/abstract=1880938 or http://dx.doi.org/10.2139/ssrn.1880938

Arndt Rudiger Reichert (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Harald Tauchmann

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
45128 Essen
Germany

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