Feeling useless: the effect of unemployment on mental health in the Great Recession

  title={Feeling useless: the effect of unemployment on mental health in the Great Recession},
  author={L. Farr{\'e} and F. Fasani and H. Mueller},
  journal={IZA Journal of Labor Economics},
  • L. Farré, F. Fasani, H. Mueller
  • Published 2018
  • Economics
  • IZA Journal of Labor Economics
  • This article documents a strong connection between unemployment and mental distress using data from the Spanish National Health Survey. We exploit the collapse of the construction sector to identify the causal effect of job losses in different segments of the Spanish labor market. Our results suggest that an increase of the unemployment rate by 10 percentage points due to the breakdown in construction raised reported poor health and mental disorders in the affected population by 3 percentage… CONTINUE READING
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