How Do Job Conditions Amplify the Impacts of Mental Health Shocks?

Abstract

Although there is a large literature on the direct effects of job conditions such as unemployment or job insecurity on mental health, little is known about how the job conditions of individuals may amplify the impact of mental health shocks originated from sources unrelated to the labour market. This paper aims to fill this gap. Using the panel data from the Household, Income and Labour Dynamics in Australia (HILDA) survey, we first establish that negative life events unrelated to the labour market have significant adverse impact on individuals’ mental health, and then demonstrate that both job insecurity and job stress exacerbate the impact. We also find gender heterogeneity in the results that job insecurity and job stress affect mostly female workers.