Effects of Layoffs and Plant Closings on Depression Among Older Workers

Job displacement is widely considered a negative life event associated with subsequent economic decline and depression as established by numerous prior studies. However, little is known about whether the form of job displacement (i.e. layoffs versus plant closings) differentially affects depression. We assess the effects of different ways in which a worker is displaced on subsequent depression among U.S. men and women nearing retirement. We hypothesize that layoffs should be associated with larger effects on depression than plant closings, particularly among men. Our findings generally support our hypotheses. We find that men have significant increases in depression as a result of layoffs, but not as a result of plant closings, while the reverse is true among women.