TY - RPRT AU - Bubonya, Melisa AU - Cobb-Clark, Deborah A. AU - Ribar, David C. TI - The Bilateral Relationship between Depressive Symptoms and Employment Status PY - 2017/Mar/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 10653 UR - https://www.iza.org/publications/dp10653 AB - This paper analyzes the bilateral relationship between depressive symptoms and employment status. We find that severe depressive symptoms are partially a consequence of economic inactivity. The incidence of depressive symptoms is higher if individuals have been out of a job for an extended period. Men's mental health falls as they exit the labor force, while women's worsens only after they have been out of the labor force for a period of time. Entering unemployment is also associated with a substantial deterioration in mental health, particularly for men. We also find that severe depressive symptoms, in turn, lead to economic inactivity. Individuals are less likely to be labor force participants or employed if they experience severe depressive symptoms. Men's probability of being unemployed rises dramatically with the onset of depressive symptoms; women's unemployment is increased by protracted depressive symptoms. KW - depressive symptoms KW - HILDA survey KW - labor market status KW - unemployment KW - mental health KW - depression ER -