The Impact of Working Conditions on Mental Health: Novel Evidence from the UK

47 Pages Posted: 28 Jan 2022

See all articles by Michele Belloni

Michele Belloni

University of Turin; Center for Research on Pensions and Welfare Policies (CeRP); Netspar

Ludovico Carrino

King's College London; Ca'Foscari University, Economics Department

Elena Meschi

Ca Foscari University of Venice

Date Written: January 27, 2022

Abstract

This paper investigates the causal impact of working conditions on mental health in the UK, combining new comprehensive longitudinal data on working conditions from the European Working Condition Survey with microdata from the UK Household Longitudinal Survey (Understanding Society). Our empirical strategy accounts for the endogenous sorting of individuals into occupations by including individual fixed effects. It addresses the potential endogeneity of occupational change over time by focusing only on individuals who remain in the same occupation (same ISCO), exploiting the variation in working conditions within each occupation over time. This variation, determined primarily by general macroeconomic conditions, is likely to be exogenous from the individual point of view.

Our results indicate that improvements in working conditions have a beneficial, statistically significant, and clinically meaningful impact on depressive symptoms for women. A one standard deviation increase in the skills and discretion index reduces depression score by 2.84 points, which corresponds to approximately 20% of the GHQ score standard deviation, while a one standard deviation increase in working time quality reduces depression score by 0.97 points. The results differ by age: improvements in skills and discretion benefit younger workers (through increases in decision latitude and training) and older workers (through higher cognitive roles), as do improvements in working time quality; changes in work intensity and physical environment affect only younger and older workers, respectively. Each aspect of job quality impacts different dimensions of mental health. Specifically, skills and discretion primarily affect the loss of confidence and anxiety; working time quality impacts anxiety and social dysfunction; work intensity affects the feeling of social dysfunction among young female workers. Finally, we show that improvements in levels of job control (higher skills and discretion) and job demand (lower intensity) lead to greater health benefits, especially for occupations that are inherently characterised by higher job strain.

Keywords: mental health, working conditions, job demand, job control

JEL Classification: I1, J24, J28, J81

Suggested Citation

Belloni, Michele and Carrino, Ludovico and Meschi, Elena, The Impact of Working Conditions on Mental Health: Novel Evidence from the UK (January 27, 2022). University of Milan Bicocca Department of Economics, Management and Statistics Working Paper No. 487, Available at SSRN: https://ssrn.com/abstract=4019393

Michele Belloni

University of Turin ( email )

Lungo Dora Siena 100
Torino, 10153
Italy

Center for Research on Pensions and Welfare Policies (CeRP) ( email )

Via Real Collegio, 30
Moncalieri, Turin 10024
Italy

Netspar

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Ludovico Carrino

King's College London ( email )

Bush House North East
Strand Campus
London, WC2R 2LS
United Kingdom

HOME PAGE: http://https://kclpure.kcl.ac.uk/portal/ludovico.carrino.html

Ca'Foscari University, Economics Department ( email )

Cannaregio 873
Venice, 30121
Italy

Elena Meschi (Contact Author)

Ca Foscari University of Venice

Dorsoduro 3246
Venice, Veneto 30123
Italy

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