The Impact of Paid Employment on Mental Health: A Quasi-Experimental Study

Abstract

This study investigates what happens to people’s mental health when they get paid work after being unemployed and having common mental health problems. Using a quasi-experimental design, the study followed participants for two years and measured self-reported health, self-esteem, mastery, and happiness. About 1208 participants were selected to participate in the study (Schuring et al., 2017).

Results showed that entering paid employment positively impacted mental health for intermediate and highly-educated persons. However, people who are uneducated have experienced minimal effects, which demonstrates that work should be a big part of programs to help unemployed people with mental health problems get healthier (Schuring et al., 2017). Therefore, employment should be included in the initiatives focused on enhancing the health of unemployed individuals who suffer from mental illness.

Article Summary

This article looked at how having a paid job can help people with common mental health problems. Firstly, the authors examined how people choose paid jobs and the rationale for making those decisions (Schuring et al., 2017). They discussed the evidence that suggests that persons with mental health problems who find paid employment tend to be less symptomatic than those who are unemployed.

Secondly, the authors explored the potential causation mechanism, which suggests that paid employment may have a protective effect on mental health (Schuring et al., 2017). Finally, they concluded that paid employment may benefit individuals with common mental health problems and suggest further research to explore the selection and causation mechanisms in more detail.

Participants

The participants in the study were selected from a larger population of working-age adults with common mental health problems in the Netherlands. According to (Schuring et al., 2017), about 749 of the 1208 people chosen to take part in the study filled out the baseline questionnaire. This gave researchers important information about how paid work affects common mental health problems (Schuring et al., 2017).

The selection criteria included being employed, having a common mental health problem, and being between 18 and 65 (Schuring et al., 2017). The participants were surveyed at baseline and follow-up points to determine the impact of paid work on their mental health. The subjects were long-term unemployed and were receiving social security benefits from the cities they were partaking in.

Measures (Variables)

The study evaluated the advantages of paid employment among individuals with common mental health issues using a variety of metrics. Psychological measures such as self-esteem, mastery, and happiness were used to measure the psychological well-being of the participants (Schuring et al., 2017). Physical health was measured by self-report questionnaires and validated scales measuring physical symptoms.

Mental health was measured by a validated questionnaire assessing the severity of common mental health problems such as depression and anxiety. Furthermore, socio-demographic characteristics such as age, gender, and educational level were also measured. Thus, the different measures and variables helped the researchers explore the impacts of paid employment among individuals.

Procedures

The study employed a quasi-experimental design using longitudinal data from the Netherlands Mental Health Survey and Incidence Study-2. The authors compared two groups, those who were employed and those who were unemployed, on mental health outcomes at two points (Schuring et al., 2017). The selection mechanism was examined by comparing the baseline characteristics of the two groups, whereas the causation mechanism was examined with a difference-in-difference analysis. The difference-in-difference analysis further indicated that the effects of employment on mental health outcomes were positive, which indicates a causal effect.

Results and Discussion

The results showed that people who were employed benefited in terms of improved mental health, reduced symptoms of depression, and increased self-esteem compared to people with similar mental health issues who were unemployed. Furthermore, the study found that employed employees experienced these benefits regardless of the job type (Schuring et al., 2017). The discussion determined that having a paid job could be advantageous for individuals experiencing common mental health issues, as it provides them with a sense of purpose, belonging, and financial stability. The outcome supports the selection and causation mechanisms, indicating that the beneficial effects of paid employment with better mental health are more likely to be employed.

Strengths and Weaknesses of the Research Investigation

The study’s strengths include using a large sample size and including various measures and outcomes. Furthermore, the research controlled for multiple confounders, such as age and education, to reduce bias. However, the study was limited by the lack of a control group, which would have helped further strengthen the evidence for a selection and causation mechanism. The research did not consider the potential influence of other mental health problems on the relationship between paid employment and mental health outcomes.

Suggestions

The studies investigating the links between mental health and paid employment have been limited by the difficulty in isolating causation from a selection. To further address the short-term effects of work on health and vice versa, larger studies are needed, with data on three consecutive measurements available for all participants. Additionally, a lagged analysis should be employed to reduce the potential influence of reversed causality. After that, the causal relationship between employment transitions and perceived health will be more certain.

Strengths & Weaknesses of the Research Investigation

The hybrid model of fixed and random effects offers a comprehensive approach for detaching selection and causation operations in paid work. This is an important contribution to understanding the impact of paid employment on mental health, as it allows for a complete assessment of the relationship between these two variables. Secondly, the study was based on a large sample of over 1,208 individuals, providing a strong basis for generalizing the outcomes. Thirdly, the research considered a wide range of socio-demographic and job-related factors, allowing for a more nuanced examination of the effects of paid employment on mental health.

Two items of concern regarding the research investigation are the limitations of the studies. Compared to random-effects models, fixed-effects and hybrid models have bigger standard errors and confidence intervals for the projections. This is particularly true for logistic regression evaluations (Papke & Wooldridge, 2022). Furthermore, most of the people in the research did not have paid jobs. Some of the respondents did have small part-time jobs, but some lost their jobs during the follow-up duration. These two items of concern indicate that more research is needed to explore further the positive sides of paid employment for people with common mental health illnesses.

Suggestions

One suggestion to address the weaknesses of the fixed-effects and hybrid models is to include more samples in the study population involved in paid employment. This would reduce the estimates’ CI and SE size and make them more precise (Yeager et al.,2019). Additionally, researchers should investigate the dynamic effects of paid employment on mental health by conducting longitudinal studies. This could provide more insight into changes in mental health over time and how it is affected by the gain and loss of paid employment.

Furthermore, researchers could consider various mental health problems and their respective effects on paid employment. Finally, researchers could further explore the effects of paid employment types, such as full-time and part-time, to understand the benefit of paid employment on mental health.

References

Papke, L. E., & Wooldridge, J. M. (2022). A simple, robust test for choosing the level of fixed effects in linear panel data models. Empirical Economics, 1-19. Web.

Schuring, M., Robroek, S. J., & Burdorf, A. (2017). The benefits of paid employment among persons with common mental health problems: evidence for the selection and causation mechanism. Scandinavian Journal of Work, Environment & Health, 540-549. Web.

Yeager, D. S., Hanselman, P., Walton, G. M., Murray, J. S., Crosnoe, R., Muller, C., Tipton, E., Schneider, B., Hulleman, C.S., Hinojosa, C.P., Paunesku, D., Romero, C., Flint., K., Roberts, A., Trott, J., Lachan, R., Buontempo, J, Yang, S.M., Carvalho, C.M & Dweck, C. S. (2019). A national experiment reveals where a growth mindset improves achievement. Nature, 573(7774), 364-369. Web.

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PsychologyWriting. (2025, February 7). The Impact of Paid Employment on Mental Health: A Quasi-Experimental Study. https://psychologywriting.com/the-impact-of-paid-employment-on-mental-health-a-quasi-experimental-study/

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"The Impact of Paid Employment on Mental Health: A Quasi-Experimental Study." PsychologyWriting, 7 Feb. 2025, psychologywriting.com/the-impact-of-paid-employment-on-mental-health-a-quasi-experimental-study/.

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PsychologyWriting. (2025) 'The Impact of Paid Employment on Mental Health: A Quasi-Experimental Study'. 7 February.

References

PsychologyWriting. 2025. "The Impact of Paid Employment on Mental Health: A Quasi-Experimental Study." February 7, 2025. https://psychologywriting.com/the-impact-of-paid-employment-on-mental-health-a-quasi-experimental-study/.

1. PsychologyWriting. "The Impact of Paid Employment on Mental Health: A Quasi-Experimental Study." February 7, 2025. https://psychologywriting.com/the-impact-of-paid-employment-on-mental-health-a-quasi-experimental-study/.


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PsychologyWriting. "The Impact of Paid Employment on Mental Health: A Quasi-Experimental Study." February 7, 2025. https://psychologywriting.com/the-impact-of-paid-employment-on-mental-health-a-quasi-experimental-study/.