Lagomarsino, E. Spiganti, A. (2020)
No gain in pain: psychological well-being, participation, and wages in the BHPS. The European Journal of Health Economics, 21(9), 1375-1389
Accounting 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.