Types of Inactivity and Depression Among Older Individuals

Depression imposes substantial individual and societal economic costs, including lower productivity and higher healthcare use. However, while the relationship between employment and mental health has been explored, less is known about the potentially countervailing effects of different types of economic inactivity on depression among older individuals. The authors employ a series of models, including fixed effects panel data models and matching on rich data from the English Longitudinal Study of Ageing (ELSA) to investigate whether different types of inactivity might have heterogenous effects on depression. The authors find that whereas transitions to involuntary inactivity (unemployment) do not appear to have a perceivable effect on depression, transitions to voluntary inactivity (retirement) seem to decrease it.