Skip to main content
Top
Published in: International Journal for Equity in Health 1/2016

Open Access 01-12-2016 | Research

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

Author: Anne Grete Tøge

Published in: International Journal for Equity in Health | Issue 1/2016

Login to get access

Abstract

Background

Unemployment 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.

Methods

The 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.

Results

Becoming 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.

Conclusions

Financial 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.
Appendix
Available only for authorised users
Literature
4.
go back to reference Strandh M. Varying unemployment experiences?: the economy and mental well-being. Umeå University: Department of Sociology; 2000. Strandh M. Varying unemployment experiences?: the economy and mental well-being. Umeå University: Department of Sociology; 2000.
6.
go back to reference Marmot M, Bloomer E, Goldblatt P. The role of social determinants in tackling health objectives in a context of economic crisis. Public Health Rev. 2013;35:1–24. Marmot M, Bloomer E, Goldblatt P. The role of social determinants in tackling health objectives in a context of economic crisis. Public Health Rev. 2013;35:1–24.
7.
go back to reference Esser I, Ferrarini T, Nelson K, Palme J, Sjöberg O: Unemployment benefits in EU member states. European Union: Brussels, European Commission; 2013. Esser I, Ferrarini T, Nelson K, Palme J, Sjöberg O: Unemployment benefits in EU member states. European Union: Brussels, European Commission; 2013.
8.
go back to reference Ferrarini T, Nelson K, Sjöberg O. Decomposing the effect of social policies on population health and inequalities: An empirical example of unemployment benefits. Scandinavian J Public Health. 2014;42:635–42.CrossRef Ferrarini T, Nelson K, Sjöberg O. Decomposing the effect of social policies on population health and inequalities: An empirical example of unemployment benefits. Scandinavian J Public Health. 2014;42:635–42.CrossRef
9.
go back to reference Kawachi I, Adler NE, Dow WH. Money, schooling, and health: Mechanisms and causal evidence. Ann N Y Acad Sci. 2010;1186:56–68.CrossRefPubMed Kawachi I, Adler NE, Dow WH. Money, schooling, and health: Mechanisms and causal evidence. Ann N Y Acad Sci. 2010;1186:56–68.CrossRefPubMed
10.
go back to reference Wagstaff A, Van Doorslaer E. Income inequality and health: what does the literature tell us? Annu Rev Public Health. 2000;21:543–67.CrossRefPubMed Wagstaff A, Van Doorslaer E. Income inequality and health: what does the literature tell us? Annu Rev Public Health. 2000;21:543–67.CrossRefPubMed
11.
go back to reference Miething A. A matter of perception: Exploring the role of income satisfaction in the income-mortality relationship in German survey data 1995–2010. Soc Sci Med. 2013;99:72.CrossRefPubMed Miething A. A matter of perception: Exploring the role of income satisfaction in the income-mortality relationship in German survey data 1995–2010. Soc Sci Med. 2013;99:72.CrossRefPubMed
13.
go back to reference Miething A, Lundberg O, Geyer S. Income and health in different welfare contexts: A comparison of Sweden, East and West Germany. Scandinavian J Public Health. 2013;41:260–8.CrossRef Miething A, Lundberg O, Geyer S. Income and health in different welfare contexts: A comparison of Sweden, East and West Germany. Scandinavian J Public Health. 2013;41:260–8.CrossRef
14.
go back to reference Jahoda M. Employment and unemployment: a social-psychological analysis. Cambridge: Cambridge University Press; 1982. Jahoda M. Employment and unemployment: a social-psychological analysis. Cambridge: Cambridge University Press; 1982.
15.
go back to reference Wilkinson RG. Mortality and distribution of income - Low relative income affects mortality. Br Med J. 1998;316:1611–2.CrossRef Wilkinson RG. Mortality and distribution of income - Low relative income affects mortality. Br Med J. 1998;316:1611–2.CrossRef
16.
go back to reference Kearns A, Whitley E, Bond L, Egan M, Tannahill C. The psychosocial pathway to mental well-being at the local level: investigating the effects of perceived relative position in a deprived area context. J Epidemiol Community Health. 2013;67:87–94.CrossRefPubMed Kearns A, Whitley E, Bond L, Egan M, Tannahill C. The psychosocial pathway to mental well-being at the local level: investigating the effects of perceived relative position in a deprived area context. J Epidemiol Community Health. 2013;67:87–94.CrossRefPubMed
17.
go back to reference Miething A. Others’ income, one’s own fate. How income inequality, relative social position and social comparisons contribute to disparities in health. Department of Sociology, Stockholm University. 2014. Miething A. Others’ income, one’s own fate. How income inequality, relative social position and social comparisons contribute to disparities in health. Department of Sociology, Stockholm University. 2014.
19.
go back to reference Catalano R, Goldman-Mellor S, Saxton K, Margerison-Zilko C, Subbaraman M, LeWinn K, et al. The health effects of economic decline. Annu Rev Public Health. 2011;32:431–50. Catalano R, Goldman-Mellor S, Saxton K, Margerison-Zilko C, Subbaraman M, LeWinn K, et al. The health effects of economic decline. Annu Rev Public Health. 2011;32:431–50.
20.
go back to reference Murphy GC, Athanasou JA. The effect of unemployment on mental health. J Occup Organ Psychol. 1999;72:83–99.CrossRef Murphy GC, Athanasou JA. The effect of unemployment on mental health. J Occup Organ Psychol. 1999;72:83–99.CrossRef
21.
go back to reference McKee-Ryan FM, Song ZL, Wanberg CR, Kinicki AJ. Psychological and physical well-being during unemployment: A meta-analytic study. J Appl Psychol. 2005;90:53–76.CrossRefPubMed McKee-Ryan FM, Song ZL, Wanberg CR, Kinicki AJ. Psychological and physical well-being during unemployment: A meta-analytic study. J Appl Psychol. 2005;90:53–76.CrossRefPubMed
22.
go back to reference Paul KI, Moser K. Unemployment impairs mental health: Meta-analyses. J Vocat Behav. 2009;74:264–82.CrossRef Paul KI, Moser K. Unemployment impairs mental health: Meta-analyses. J Vocat Behav. 2009;74:264–82.CrossRef
23.
go back to reference Tøge AG, Blekesaune M. Unemployment transitions and self-rated health in Europe: A longitudinal analysis of EU-SILC from 2008 to 2011. Soc Sci Med. 2015;143:171–8.CrossRefPubMed Tøge AG, Blekesaune M. Unemployment transitions and self-rated health in Europe: A longitudinal analysis of EU-SILC from 2008 to 2011. Soc Sci Med. 2015;143:171–8.CrossRefPubMed
24.
go back to reference Gunasekara FI, Carter K, Blakely T. Change in income and change in self-rated health: Systematic review of studies using repeated measures to control for confounding bias. Soc Sci Med. 2011;72:193–201.CrossRefPubMed Gunasekara FI, Carter K, Blakely T. Change in income and change in self-rated health: Systematic review of studies using repeated measures to control for confounding bias. Soc Sci Med. 2011;72:193–201.CrossRefPubMed
25.
go back to reference Aittomäki A, Martikainen P, Laaksonen M, Lahelma E, Rahkonen O. Household economic resources, labour-market advantage and health problems – A study on causal relationships using prospective register data. Soc Sci Med. 2012;75:1303–10.CrossRefPubMed Aittomäki A, Martikainen P, Laaksonen M, Lahelma E, Rahkonen O. Household economic resources, labour-market advantage and health problems – A study on causal relationships using prospective register data. Soc Sci Med. 2012;75:1303–10.CrossRefPubMed
27.
go back to reference Blane D, Smith GD, Bartley M. Social selection: what does it contribute to social class differences in health? Sociol Health Illness. 1993;15:1–15.CrossRef Blane D, Smith GD, Bartley M. Social selection: what does it contribute to social class differences in health? Sociol Health Illness. 1993;15:1–15.CrossRef
28.
go back to reference Adams P, Hurd MD, McFadden D, Merrill A, Ribeiro T. Healthy, wealthy, and wise? Tests for direct causal paths between health and socioeconomic status. J Econ. 2003;112:3–56.CrossRef Adams P, Hurd MD, McFadden D, Merrill A, Ribeiro T. Healthy, wealthy, and wise? Tests for direct causal paths between health and socioeconomic status. J Econ. 2003;112:3–56.CrossRef
29.
go back to reference Halleröd B, Gustafsson J-E. A longitudinal analysis of the relationship between changes in socio-economic status and changes in health. Soc Sci Med. 2011;72:116–23.CrossRefPubMed Halleröd B, Gustafsson J-E. A longitudinal analysis of the relationship between changes in socio-economic status and changes in health. Soc Sci Med. 2011;72:116–23.CrossRefPubMed
30.
go back to reference Halliday TJ: Income volatility and health. IZA Discussion Papers; 2007. Halliday TJ: Income volatility and health. IZA Discussion Papers; 2007.
31.
go back to reference Huijts T, Reeves A, McKee M, Stuckler D. The impacts of job loss and job recovery on self-rated health: testing the mediating role of financial strain and income. Eur J Public Health. 2015;25(6):801-6. Huijts T, Reeves A, McKee M, Stuckler D. The impacts of job loss and job recovery on self-rated health: testing the mediating role of financial strain and income. Eur J Public Health. 2015;25(6):801-6.
32.
go back to reference Eriksson I, Undén A-L, Elofsson S. Self-rated health. Comparisons between three different measures. Results population study. Int J Epidemiol. 2001;30:326–33.CrossRefPubMed Eriksson I, Undén A-L, Elofsson S. Self-rated health. Comparisons between three different measures. Results population study. Int J Epidemiol. 2001;30:326–33.CrossRefPubMed
33.
go back to reference Burström B, Fredlund P. Self rated health: Is it as good a predictor of subsequent mortality among adults in lower as well as in higher social classes? J Epidemiol Community Health. 2001;55:836–40.CrossRefPubMedPubMedCentral Burström B, Fredlund P. Self rated health: Is it as good a predictor of subsequent mortality among adults in lower as well as in higher social classes? J Epidemiol Community Health. 2001;55:836–40.CrossRefPubMedPubMedCentral
34.
go back to reference Idler EL, Russell LB, Davis D: Survival, functional limitations, and self-rated health in the NHANES I Epidemiologic Follow-up Study. First national health and nutrition examination survey. Am J Epidemiol. 1992;2000(152):874–83. Idler EL, Russell LB, Davis D: Survival, functional limitations, and self-rated health in the NHANES I Epidemiologic Follow-up Study. First national health and nutrition examination survey. Am J Epidemiol. 1992;2000(152):874–83.
35.
go back to reference Rosato M: Self-reported health and mortality: exploring the relationship using administrative data deived from the UK Census. Queen’s University, School of Medicine, Dentistry and Biomedical Sciences; 2012. Rosato M: Self-reported health and mortality: exploring the relationship using administrative data deived from the UK Census. Queen’s University, School of Medicine, Dentistry and Biomedical Sciences; 2012.
36.
go back to reference Maddox GL, Douglass EB. Self-assessment of health: a longitudinal study of elderly subjects. J Health Soc Behav. 1973;14:87–93. Maddox GL, Douglass EB. Self-assessment of health: a longitudinal study of elderly subjects. J Health Soc Behav. 1973;14:87–93.
37.
go back to reference Astin J. The European Union Harmonised Indices of Consumer Prices (HICP). Stat J UN Econ Comm Eur. 1999;16(2,3):123–35. Astin J. The European Union Harmonised Indices of Consumer Prices (HICP). Stat J UN Econ Comm Eur. 1999;16(2,3):123–35.
38.
go back to reference OECD: Framework for integrated analysis. In OECD Framework for Statistics on the Distribution of Household Income, Consumption and Wealth. OECD Publishing, Paris; 2013:171–192. OECD: Framework for integrated analysis. In OECD Framework for Statistics on the Distribution of Household Income, Consumption and Wealth. OECD Publishing, Paris; 2013:171–192.
39.
go back to reference Hagenaars A, Klaas De V, Asghar ZM. Poverty statistics in the late 1980s: research based on micro-data. Luxembourg: Office for Official Publications of the European Communities; 1994. Hagenaars A, Klaas De V, Asghar ZM. Poverty statistics in the late 1980s: research based on micro-data. Luxembourg: Office for Official Publications of the European Communities; 1994.
41.
go back to reference Bradshaw J, Mayhew E: The measurement of extreme poverty in the European Union. pp. 108: The University of York; 2010:108. Bradshaw J, Mayhew E: The measurement of extreme poverty in the European Union. pp. 108: The University of York; 2010:108.
43.
go back to reference Gujarati DN, Porter DC. Basic econometrics. New York: McGraw-Hill; 2009. Gujarati DN, Porter DC. Basic econometrics. New York: McGraw-Hill; 2009.
44.
go back to reference Krugman PR. End this depression now! New York: W. W. Norton & Company; 2012. Krugman PR. End this depression now! New York: W. W. Norton & Company; 2012.
46.
go back to reference Ferrie JE, Shipley MJ, Marmot MG, Stansfeld SA, Smith GD. An uncertain future: the health effects of threats to employment security in white-collar men and women. Am J Public Health. 1998;88:1030–6.CrossRefPubMedPubMedCentral Ferrie JE, Shipley MJ, Marmot MG, Stansfeld SA, Smith GD. An uncertain future: the health effects of threats to employment security in white-collar men and women. Am J Public Health. 1998;88:1030–6.CrossRefPubMedPubMedCentral
48.
go back to reference Heckman S, Lim H, Montalto C. Factors related to financial stress among college students. J Financial Therapy. 2014;5(1):19–39.CrossRef Heckman S, Lim H, Montalto C. Factors related to financial stress among college students. J Financial Therapy. 2014;5(1):19–39.CrossRef
49.
go back to reference Suhrcke M, Stuckler D. Will the recession be bad for our health? It depends. Soc Sci Med. 2012;74:647–53.CrossRefPubMed Suhrcke M, Stuckler D. Will the recession be bad for our health? It depends. Soc Sci Med. 2012;74:647–53.CrossRefPubMed
52.
Metadata
Title
Health effects of unemployment in Europe (2008–2011): a longitudinal analysis of income and financial strain as mediating factors
Author
Anne Grete Tøge
Publication date
01-12-2016
Publisher
BioMed Central
Published in
International Journal for Equity in Health / Issue 1/2016
Electronic ISSN: 1475-9276
DOI
https://doi.org/10.1186/s12939-016-0360-6

Other articles of this Issue 1/2016

International Journal for Equity in Health 1/2016 Go to the issue