Poor Job Conditions Amplify Negative Mental Health Shocks

Although there is a large body of literature on the direct effects of job conditions such as job insecurity and job stress on mental health, little is known about how these job conditions may modify the impact of mental health shocks originating from sources unrelated to the labour market. This paper's aim is 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 a significant adverse impact on individuals’ mental health, and then we demonstrate that both job insecurity and job stress exacerbate this impact. We also find gender heterogeneity in the results that shows job insecurity and job stress affect female workers primarily and more severely.