THE EFFECTS OF LOW-PAY AND UNEMPLOYMENT ON PSYCHOLOGICAL WELL-BEING -A LOGISTIC-REGRESSION APPROACH

The paper explores the relationship between unemployment and mental di stress. The analysis draws upon data from the 1992 British Household P anel Study (BHPS). Six different measures of mental distress are used. Controlling for a number of individual characteristics, unemployed in dividuals are found to suffer significantly higher odds of experiencin g a marked rise in anxiety, depression and loss of confidence and a re duction in self-esteem and the level of general happiness even compare d with individuals in low-paid employment. This finding highlights the involuntary nature of unemployment. The results also suggest that all six measures of psychological well-being are lower in middle age comp ared with younger and older age groups. In addition, women appear robe less affected by unemployment than men. (C) 1998 Elsevier Science B.V .