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No gain in pain: psychological well-being, participation, and wages in the BHPS
Elena Lagomarsino1, Alessandro Spiganti2,3
1Department of Economics, University of Genoa, Genoa, Italy.
Abstract:
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.
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