No gain in pain : psychological well-being, participation, and wages in the BHPS

Published 22 September 2020Accounting for endogeneity, unobserved heterogeneity, and sample selection in an unified framework, we investigate the effect of psychological well-being on wages and labour market participation using a panel from the British Household Panel Survey. We find the effect of psychological well-being on labour market outcomes to differ across gender. In particular, psychological distress significantly reduces participation across genders, but, conditional on participation, has a significant negative effect on hourly wages only in the female sample.This article was published Open Access with the support from the EUI Library through the CRUI - Springer Transformative Agreement (2020-2024