The Mental Cost of Job Loss: Assessing the Impact on Young Adults in Vietnam

44 Pages Posted: 2 Sep 2022

See all articles by Richard Freund

Richard Freund

University of Oxford

Marta Favara

University of Oxford - Department of International Development

Catherine Porter

Lancaster University - Department of Economics

Douglas Scott

University of Oxford

Le Thuc Duc

Vietnam Academy of Social Sciences (VASS) - Centre for Analysis and Forecasting

Abstract

We exploit the extensive job loss associated with the devastating fourth wave of COVID-19 in Vietnam to examine the impact of unemployment on young people's experiences of anxiety and depression. Using data from a longitudinal study with individual and survey-wave fixed effects, we show that job loss significantly increases levels of anxiety, but not depression. Specifically, job loss leads to a 5.9 percentage point increase in the probability of experiencing symptoms consistent with either mild or severe anxiety, almost doubling the pre-wave baseline. This effect is driven by individuals in the top earnings tercile who no longer live in their natal household - suggesting that the impact of job loss on anxiety is most acute among young people who are under pressure as the primary earners in their household. Perceived financial strain and food insecurity explain up to 22% of the estimated increase in anxiety. Our results support expanding mental health programmes to explicitly target young adults who have lost their job.

Keywords: mental health, job loss, Vietnam, COVID-19

JEL Classification: J6, I1, I3

Suggested Citation

Freund, Richard and Favara, Marta and Porter, Catherine and Scott, Douglas and Thuc Duc, Le, The Mental Cost of Job Loss: Assessing the Impact on Young Adults in Vietnam. IZA Discussion Paper No. 15522, Available at SSRN: https://ssrn.com/abstract=4206223 or http://dx.doi.org/10.2139/ssrn.4206223

Richard Freund (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, OX1 4AU
United Kingdom

Marta Favara

University of Oxford - Department of International Development ( email )

United Kingdom

Catherine Porter

Lancaster University - Department of Economics ( email )

Lancaster LA1 4YX, LA1 4YX
United Kingdom

Douglas Scott

University of Oxford

Mansfield Road
Oxford, OX1 4AU
United Kingdom

Le Thuc Duc

Vietnam Academy of Social Sciences (VASS) - Centre for Analysis and Forecasting ( email )

1 Lieu Giai Street
Hanoi
Vietnam

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