Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/335953 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18305
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
What determines long-term mental health and its intergenerational correlation? Exploiting variation in unemployment rates upon labor market entry across Australian states and cohorts, we provide novel evidence that the mental health of daughters is affected by the labor market entry conditions of their parents. In particular, a one standard deviation shock to the unemployment rate upon parental labor market entry worsens daughters' mental health during adolescence by 11% of a standard deviation. This effect is accompanied by lower levels of satisfaction with their health, financial situation, safety, and overall life. A mediation analysis suggests that a sizable proportion (24%) of the impacts on the descendants' mental health is explained by the worse mental health of their parents at mid-life. We do not detect any systematic impact of parental labor market entry conditions among sons.
Subjects: 
recession
mental health
well-being
intergenerational correlation
Australia
JEL: 
E32
I14
I31
J62
Document Type: 
Working Paper

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