Empirical Study On The Impact Of Unemployment On Mental Health And The Moderating Effect Of Unemployment Insurance

Common prosperity is the essential requirement of socialism,which means that the people are rich in both material and spiritual life.However,in recent years,the mental health of Chinese residents has shown a downward trend,but the current awareness of mental illness and medical resources are relatively scarce.The reasons of the downward of mental health are complex,and one of the most important factors is working.For that reason,the mental health of unemployed people has received widespread attention in many policies and research.However,there are few studies in China that explore the impact of unemployment on mental health,which is not conducive to learning the laws of the development of mental health of Chinese residents and further formulating more scientific health protection policies.In order to supplement the empirical evidence of the impact of unemployment on the mental health of Chinese labourer,this article firstly defines key concepts and elaborates the theoretical basis.Further based on the analysis of the reality background and relevant literature,this paper proposes the hypothesis of the impact and the mechanism of unemployment on the mental health of labourer within the theoretical framework.Subsequently,using data from the China Family Panel Survey(CFPS)for four periods from 2014 to 2020,this paper comprehensively uses empirical research methods to verify the hypothesis,for example,the independent sample T test,ordinary least squares(OLS),instrumental variable and two-stage least squares(IV-2SLS),propensity score matching(PSM).Based on the empirical analysis,this paper draws the following conclusions:(1)Unemployment has a negative impact on mental health within two years.The month of unemployment has a significant negative impact on individual mental health scores,and it will last for two years;(2)The impact of unemployment on mental health is heterogeneous.The negative impact of unemployment has significant heterogeneities in marriage,age,and education,which is more significant for the married,adolescent and higher educated individuals.(3)Unemployment damages mental health by lowering status and trust.The analysis of intermediary mechanisms finds that unemployed individuals have significantly lower perceptions of personal status and social trust,both of which are not conducive to maintaining mental health;(4)Participation in unemployment insurance in the current period has a positive moderating effect.Participation in unemployment insurance weakens the negative impact of unemployment on individual mental health,but early participation does not have a significant moderating effect.Based on the conclusions of empirical study,this paper suggests the following ways to enhance the mental health of labourer:(1)Expand policy coverage and stimulate the vitality of multi subject participation;(2)Enhance disease prevention and cure abilities,reduce the medical burden on the unemployed;(3)Strengthen the function of institutional protection and carry out ideological intervention for the unemployed;(4)Strengthen humanistic care efforts and promote mutual trust and assistance among the unemployed.