@article{e2380810a41d43f78acfe5427b6854da,
title = "Economic downturns and mental health in Germany",
abstract = "We study the impact of the macroeconomic environment on mental health in Germany. Endogeneity concerns are tackled using a shift-share instrumental variables approach in which exposure to macroeconomic fluctuations is estimated from regional variations in historical industry sector composition. Estimation results reveal strong procyclical effects on the 12-item short form survey's mental health component summary score. These results are supported by corresponding estimates for self-assessed life satisfaction and objective mental health-related hospitalizations. Effects mainly operate through worries about future job loss and income reductions, while actual unemployment and income effects are small. An event study of the impact of the Great Recession reveals that adverse effects on mental health are persistent and remained even after the economy recovered.",
keywords = "Business cycle, Great Recession, Mental health, Shift-share instrument, Well-being",
author = "Daniel Avdic and \{de New\}, \{Sonja C.\} and Kamh{\"o}fer, \{Daniel A.\}",
note = "Funding Information: We thank the Editor, Peter Rupert, an Associate Editor, and two anonymous referees for many helpful suggestions which improved the paper considerably. We would also like to thank Anne-Lise Breivik, Thomas Buchmueller, Pierre Cahuc, John de New, Corinna Hartung, David Johnston, Daniel Kopasker, Marie Kruse, Claryn Kung, Behnud Mir Djawadi, Andreas Lichter, Fabrizio Mazzonna, Dennis Petrie, Christopher Ruhm, Hendrik Schmitz, Stefanie Schurer, Michael Shields, Sebastian Siegloch, Harald Tauchmann, Ansgar W?bker, and seminar participants at the 2017 Essen Health Conference, 2018 AWEHE Meeting (Lorne), 2018 NHESG Meeting (Troms?), 2018 Swiss Society of Health Economics Conference (Lucerne), 2018 and 2019 Essen Economics of Mental Health Workshops, 2018 RGS Doctoral Conference, 2018 DGG? Health Econometrics Committee Workshop (both Essen), 2019 iHEA Conference (Basel), and 2020 virtual EALE?SOLE?AASLE World Conference for valuable comments. An earlier version circulates as ?Economic downturns and mental wellbeing?. We are grateful to Kai Fischer and Claryn Kung for excellent research assistance. Financial support from an Australian Research Council Discovery Grant (DP190102765) and the DAAD?Go8 Joint Research Cooperation Scheme (57139164) are gratefully acknowledged. This article uses data from the German Socio-Economic Panel Study (GSOEP) subject to German Data Protection Legislation. The data is available for any researcher free of charge by signing a data distribution contract with the German Institute for Economic Research (DIW Berlin, https://www.diw.de/documents/dokumentenarchiv/17/diw\_01.c.44985.de/soep\_cnef\_access\_procedures\_2014.pdf) that hosts the GSOEP data. The authors provide assistance in applying for data access. Syntax files that allow replicating all results are available on the European Economic Review's website. Funding Information: We thank the Editor, Peter Rupert, an Associate Editor, and two anonymous referees for many helpful suggestions which improved the paper considerably. We would also like to thank Anne-Lise Breivik, Thomas Buchmueller, Pierre Cahuc, John de New, Corinna Hartung, David Johnston, Daniel Kopasker, Marie Kruse, Claryn Kung, Behnud Mir Djawadi, Andreas Lichter, Fabrizio Mazzonna, Dennis Petrie, Christopher Ruhm, Hendrik Schmitz, Stefanie Schurer, Michael Shields, Sebastian Siegloch, Harald Tauchmann, Ansgar W{\"u}bker, and seminar participants at the 2017 Essen Health Conference, 2018 AWEHE Meeting (Lorne), 2018 NHESG Meeting (Troms{\o}), 2018 Swiss Society of Health Economics Conference (Lucerne), 2018 and 2019 Essen Economics of Mental Health Workshops, 2018 RGS Doctoral Conference, 2018 DGG{\"O} Health Econometrics Committee Workshop (both Essen), 2019 iHEA Conference (Basel), and 2020 virtual EALE–SOLE–AASLE World Conference for valuable comments. An earlier version circulates as “Economic downturns and mental wellbeing”. We are grateful to Kai Fischer and Claryn Kung for excellent research assistance. Financial support from an Australian Research Council Discovery Grant ( DP190102765 ) and the DAAD–Go8 Joint Research Cooperation Scheme ( 57139164 ) are gratefully acknowledged. This article uses data from the German Socio-Economic Panel Study (GSOEP) subject to German Data Protection Legislation. The data is available for any researcher free of charge by signing a data distribution contract with the German Institute for Economic Research (DIW Berlin, https://www.diw.de/documents/dokumentenarchiv/17/diw\_01.c.44985.de/soep\_cnef\_access\_procedures\_2014.pdf ) that hosts the GSOEP data. The authors provide assistance in applying for data access. Syntax files that allow replicating all results are available on the European Economic Review{\textquoteright}s website. Publisher Copyright: {\textcopyright} 2021 Elsevier B.V. Copyright: Copyright 2021 Elsevier B.V., All rights reserved.",
year = "2021",
month = nov,
doi = "10.1016/j.euroecorev.2021.103915",
language = "English",
volume = "140",
journal = "European Economic Review",
issn = "0014-2921",
publisher = "Elsevier",
}
SDG 3 Good Health and Well-being