2022
DOI: 10.1111/obes.12489
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Mental Health and Employment: A Bounding Approach Using Panel Data*

Abstract: The effect of mental health on employment is a key policy question, but reliable causal estimates are elusive. Exploiting panel data and extending recent techniques using selection on observables to provide information on selection along unobservables, we estimate that transitioning into poor mental health leads to a 1.6% point reduction in the probability of employment; approximately 10% of the raw employment gap. Selection into mental health is almost entirely based on time‐invariant characteristics, renderi… Show more

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Cited by 16 publications
(9 citation statements)
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“…Second, and in a similar spirit to Bryan et al (2022), who investigate the impact of mental health on the probability of being in employment for prime age workers in the UK, we implement the bounds approach proposed by Oster (2019). The key idea is to assess how important unobservable factors should be relative to observable ones in order to nullify our estimated coefficients.…”
Section: Statistical Inference and Causal Interpretationmentioning
confidence: 99%
“…Second, and in a similar spirit to Bryan et al (2022), who investigate the impact of mental health on the probability of being in employment for prime age workers in the UK, we implement the bounds approach proposed by Oster (2019). The key idea is to assess how important unobservable factors should be relative to observable ones in order to nullify our estimated coefficients.…”
Section: Statistical Inference and Causal Interpretationmentioning
confidence: 99%
“…The bias-corrected estimates are positive and somewhat larger in magnitude (between 0.066 and 0.099), and the identified set of parameters does not include the zero also in this case. The general conclusion is that, 18 Oster (2019) and Bryan et al (2020) point out that most phenomena cannot be completely explained in a deterministic way, leaving room to a certain degree of randomness. Then, a rule of thumb suggests to assume as the maximum value of R 2 not 1 but 1.3 times the value obtained in the most complete specification.…”
Section: Omitted Variable Biasmentioning
confidence: 99%
“…This gap is even larger if we look solely at people with mental health problems (Bryan et al. 2020). The current government has pledged to narrow this disability employment gap substantially and reduce the disability benefits caseload (DWP 2017a).…”
Section: Background and Motivationmentioning
confidence: 99%
“…Further, there is a large 'disability employment gap', with only 44% of people with a disability in work, compared to 87% of individuals who do not have a disability. This gap is even larger if we look solely at people with mental health problems (Bryan et al 2020). The current government has pledged to narrow this disability employment gap substantially and reduce the disability benefits caseload (DWP 2017a).…”
Section: Introductionmentioning
confidence: 99%