Abstract
Since the 1970s, most western countries have experienced an increase in jobs characterized by temporary employment working arrangements. Research links temporary employment to negative health outcomes. Yet, no study has analysed the effects on the mental health of workers in involuntary temporary employment. This study analyses the consequences of involuntary temporary employment for mental health. We distinguish between different lengths of exposure to involuntary temporary employment and assess the effects separately for women and men. We use a cohort design that combines data from the Danish version of the longitudinal European Labour Force Survey with administrative data about use of prescription drugs for anxiety and stress. Using a fixed effects approach, we identify the effects of involuntary full-time temporary employment on mental health over time. To further investigate causal effects, we also compare the outcomes of workers in involuntary full-time temporary employment with a control group that consists of workers who become employed in involuntarily full-time temporary job at a later point of time. For women in involuntary full-time temporary employment (for six quarters or more) the results show a deterioration in mental health as indicated by a 12.8 percentage point increase in drug use. Involuntary full-time temporary employment for one quarter results in a decrease in drug use by 1.1 percentage points, but no lasting effects. For men, we find no mental health consequences of involuntary full-time temporary employment. We conclude that involuntary full-time temporary employment for six quarters or more is likely to be harmful for women's mental health, while shorter periods of involuntary full-time temporary employment may have a minor positive impact. The implications suggest that it is advisable for labour market policy to make it easy for those in involuntary temporary employment to find permanent jobs, and that policy makers should consider adverse mental health problems when addressing policies affecting the prevalence of temporary employment.