Health effects of unemployment in Europe (2008–2011): a longitudinal analysis of income and financial strain as mediating factors

Abstract

BackgroundUnemployment has a number of negative consequences, such as decreased income and poor self-rated health. However, the relationships between unemployment, income, and health are not fully understood. Longitudinal studies have investigated the health effect of unemployment and income separately, but the mediating role of income remains to be scrutinized. Using longitudinal data and methods, this paper investigates whether the effect of unemployment on self-rated health (SRH) is mediated by income, financial strain and unemployment benefits.MethodsThe analyses use data from the longitudinal panel of European Union Statistics on Income and Living Conditions (EU-SILC) over the 4 years of 2008 to 2011. Individual fixed effects models are applied, estimating the longitudinal change in SRH as people move from employment to unemployment, and investigating whether this change is reduced after controlling for possible mediating mechanisms, absolute income change, relative income change, relative income rank, income deprivation, financial strain, and unemployment benefits.ResultsBecoming unemployed is associated with decreased SRH (−0.048, SE 0.012). This decrease is 19 % weaker (−0.039, SE 0.010) after controlling for change in financial strain. Absolute and relative changes in household equalized income, as well as changes in relative rank and transitions into income deprivation, are not found to be associated with change in SRH.ConclusionsFinancial strain is found to be a potential mediator of the individual health effect of unemployment, while neither absolute income, relative income, relative rank, income deprivation nor unemployment benefits are found to be mediators of this relationship.

The triple bind of single-parent families

“…While Huijts et al (2015) use a cross-sectional design with control for observed differences at baseline, Tøge (2016) uses a longitudinal design that controls for all time-invariant factors, including the unobserved. This implies that the effect presented by Huijts et al (2015) could be overestimated (due to selection bias), while the effect presented by Tøge (2016) is on the conservative side. However, both studies suggest that employment positively affects health through mechanisms other than income alone; for instance, through supporting agency and self-efficacy, stimulating a more regular and healthy lifestyle and providing social contacts (Mirowsky & Ross, 2003).…”

“…As employment is a major source of income for households, health is assumed to be positively affected by employment by reducing poverty risks (Bartley, 1994;Catalano, 1991;Catalano et al, 2011;Tøge, 2016), though this mediating effect of income is somewhat disputed (Huijts et al, 2015;Tøge, 2016). Using the exact same longitudinal data (EU-SILC), Huijts et al (2015) and Tøge (2016) come to different conclusions when investigating the health effects of unemployment.…”

“…Using the exact same longitudinal data (EU-SILC), Huijts et al (2015) and Tøge (2016) come to different conclusions when investigating the health effects of unemployment. While Huijts et al (2015) suggest that about 30% of the health effects of unemployment is driven by financial strain, Tøge (2016) claims that the mediating effect is half of this, but maybe nothing at all. These diverging results are probably due to the different statistical methods applied.…”

European health inequality through the ‘Great Recession’: social policy matters

“…The association between unemployment and poor health at the individual level has been demonstrated in many studies (e.g. Schaller and Stevens ; Tøge ), although the causal direction has been disputed (e.g. Schmitz ).…”

The Unemployed Workers’ Perceptions of Stress and Employment Prospects in Macedonia: The Role of Alternative Adjustment Mechanisms

“…Namely, unemployment status imposes to individuals and their families additional burden as non-pecuniary costs since employment is not only a source of income, but also provides social relationships, identity in the society and individual self-esteem (Winkelmann and Winkelmann 1998;Tøge 2016). The empirical literature shows that unemployed persons manifest significant symptoms of deteriorated health conditions such as higher incidence of stress, anxiety and depression (Bordea and Pellegrini 2014).…”