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Post World War II European welfare states experienced several decades of relatively low unemployment, followed by a plague of persistently high unemployment since the 1980s. We impute the higher unemployment to welfare states' diminished ability to cope with more turbulent economic times, such...

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In this paper the effects of unemployment on mental health are analysed. A simple model where both the occurrence of and duration of unemployment are allowed to affect mental health is specified. Panel data are used to control for "fixed effects", i.e. omitted variables that are constant over...

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