The adverse impact of joblessness on mental health.The case of Modena district in Italy

The Great Recession has caused tangible costs in terms of cuts in employment and income in European countries. The uncertainties connected to the increased joblessness and spread of precarious employment have been found in the literature as possible determinants of bad mental health. This paper addresses the topic by using local microdata to measure the impact of the crisis on mental health in a specific context. Multivariate analyses based on the 2006 and 2012 Surveys on Income and Living Conditions of Households (ICESmo) living in Modena district in the North Italy (that allows comparison with pre-crisis microdata) and administrative source of data highlight a decrease in mental health more accentuated for women. Empirical findings also suggest a positive impact of active labour market policies in addressing the lack of employment with special reference to mental disabilities.