TY - RPRT AU - Vera, Micole De AU - Garcia-Brazales, Javier AU - Lin, Jiayi TI - The Long Shadow of Labor Market Entry Conditions: Intergenerational Determinants of Mental Health PY - 2025/Dec/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 18305 UR - https://www.iza.org/publications/dp18305 AB - What determines long-term mental health and its intergenerational correlation? Exploiting variation in unemployment rates upon labor market entry across Australian states and cohorts, we provide novel evidence that the mental health of daughters is affected by the labor market entry conditions of their parents. In particular, a one standard deviation shock to the unemployment rate upon parental labor market entry worsens daughters' mental health during adolescence by 11% of a standard deviation. This effect is accompanied by lower levels of satisfaction with their health, financial situation, safety, and overall life. A mediation analysis suggests that a sizable proportion (24%) of the impacts on the descendants' mental health is explained by the worse mental health of their parents at mid-life. We do not detect any systematic impact of parental labor market entry conditions among sons. KW - intergenerational correlation KW - well-being KW - mental health KW - recession KW - Australia ER -