Abstract
Underemployment is a global problem. This study aimed to assess the short- and long-term effects of underemployment (hidden unemployment) on workers' health, using data from the China Labor-force Dynamic Survey (CLDS) 2016 and 2014. Indicators reflecting workers' self-rated health, mental health, prevalence of illness over time, and employment status were analyzed using logit regression models, propensity score matching methods, and instrumental variable methods. Empirical analyses showed that: (1) In the short-term, the impact on health is multidimensional, with underemployment significantly associated with a decline in workers' self-rated health, an increase in the propensity for depression, and an increase in the prevalence of illness over a certain period of time. (2) In the long-term, the experience of underemployment two years in the past is associated with a current decline in workers' mental health. That is, the negative effects of underemployment on workers' mental health persist and do not disappear rapidly over time. The results demonstrated that underemployment is detrimental to workers' health in the short- and long-term. In the context of epidemic prevention and control, the government and society should focus on this expanding group, establish labor protection mechanisms, and reduce the multiple effects of underemployment on workers' health.