The effects of economic insecurity on health and wellbeing

This thesis examines the relationship between concerns regarding future economic misfortune and psychological wellbeing. Economic concerns are often highlighted as a source of distress within populations. The health outcomes resulting from this distress are likely to have economic impacts associated with lost productivity, and the cost of health and social care. The future orientated and subjective nature of this economic insecurity leads to these negative effects being potentially hidden. Through empirical analysis of longitudinal data from the UK, this thesis examines (i) trends in economic insecurity and assesses the potential for more objective measurement, (ii) how the likelihood of experiencing economic insecurity is related to the characteristics of employment relationships, and (iii) estimates the magnitude of the causal effect of economic insecurity on psychological wellbeing. The analysis suggests that despite broadly downward trends of economic insecurity in Great Britain, around one in ten of the working-age population are affected in any single year. Economic insecurity related to work appears to affect the largest proportion of the population. The likelihood of experiencing this form of insecurity is higher amongst temporary employees, those employed within industries that face international competition, and increases with firm tenure. Furthermore, this form of insecurity is shown to negatively impact on mental health, particularly amongst males. These findings have implications for both productivity and population health. The analysis lays a foundation for cross-country analysis of how labour market institutions, employer characteristics, and management practices limit the negative impact of economic insecurity on health and wellbeing.