Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130788
Authors: 
Farré, Lídia
Fasani, Francesco
Mueller, Hannes
Year of Publication: 
2015
Series/Report no.: 
Working Paper, School of Economics and Finance, Queen Mary University of London 774
Abstract: 
This article documents a strong connection between unemployment and mental disorders using data from the Spanish National Health Survey. We exploit the collapse of the construction sector to identify the causal effect of job loss. Our results suggest that an increase of the unemployment rate by 10 percent due to collapse of the sector raised mental disorders in the affected population by 3 percent. We argue that the large size of this effect responds to the fact that the construction sector was at the centre of the macroeconomic shock. As a result, workers exposed to the negative employment shock faced very low chances of re-entering employment. We show that this led to long unemployment spells, hopelessness and feelings of uselessness.
Subjects: 
Mental health
Great recession
Unemployment
Spain
JEL: 
I10
J60
C26
Document Type: 
Working Paper

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