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Conflicting economic policies and mental health

Evidence from the UK national living wage and benefits freeze

Bibliographic Data

ID11680956
AuthorsLateef Akanni (0000-0002-5495-1173, Department of Public Health, Policy and Systems University of Liverpool Liverpool UK, corresponding author), Otto Lenhart (0000-0003-0949-4820, Strathclyde Business School University of Strathclyde Glasgow UK), Alec Morton (0000-0003-3803-8517, Strathclyde Business School University of Strathclyde Glasgow UK)
Year2024
Volume43
Issue4
Pages1185-1208
Publication date2024-04-07
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of Policy Analysis and Management (JOURNAL)
Journal identifiersISSN: 0276-8739 • E-ISSN: 1520-6688
PublisherWiley (PUBLISHER • GB)
DOI10.1002/pam.22592
OpenAlexW4394063591
LanguageEN
Citations received2
References cited68

This study evaluates the mental health effects of two simultaneously implemented but conflicting policies in the UK: the National Living Wage and the benefits freeze policy. We employed the Callaway and Sant'Anna (2021) DID estimator to evaluate the heterogeneous policy effects, and we found that NLW leads to positive improvements in mental health. Also, we find the negative impact of the benefits freeze policy constricts the NLW effects. Our result is robust to the sensitivity analysis of the parallel trend assumption and the comparison group definition. Additional results support the psychosocial hypothesis that increased job satisfaction is strongly correlated with improvements in mental health. Also, we found evidence of substitution effects between work hours and leisure. Overall, our findings suggest that the effects of the NLW cannot be understood in isolation from the way the entire suite of policy instruments operates on earnings and liveable income for affected low wage workers

Economics · Labour economics · Mental health · Psychiatry · Public economics · Wage · Employment and Welfare Studies · Global Health Care Issues · Health disparities and outcomes · Psychology

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Unique citing works2
Citations per year1
Citation span2024 - 2026 (3)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 2
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