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The Effect of Work Status and Working Conditions on Mental Health in Four OECD Countries

Published online by Cambridge University Press:  26 March 2020

Ana Llena-Nozal
Ana Llena-Nozal*
Affiliation:
OECD
*
e-mail: Ana.Llena-Nozal@oecd.org
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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

Healthworking conditionsmodels with panel dataI1J81C23
Type
Articles
Information
National Institute Economic Review , Volume 209 , July 2009 , pp. 72 - 87
Copyright
Copyright © 2009 National Institute of Economic and Social Research

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Footnotes

∗

This research was conducted as part of the OECD Project on Work and Health. The present paper is part of the analysis that was published in Chapter 4 of the OECD Employment Outlook 2008, 'Are all jobs good for your health? The impact of work status and working conditions on mental health'. The author would like to thank Sébastien Martin for excellent research assistance. The author is also grateful to Martine Durand, Jeremy Hurst, John Martin, Stefano Scarpetta and Paul Swaim for very helpful comments and suggestions on an earlier draft. The opinions expressed in this paper are those of the author and do not necessarily reflect those of the OECD or its member states. All remaining errors are my own.

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