Effects of Layoffs and Plant Closings on Subsequent Depression Among Older Workers

Abstract

Job displacement is widely considered a negative life event associated with subsequent economic decline and depression, as established by numerous prior studies. However, little is known about whether the form of job displacement (i.e., layoffs vs. plant closings) differentially affects depression. The authors assessed the effects of different ways in which workers are displaced on subsequent depression among U.S. men and women nearing retirement. They hypothesized that layoffs would be associated with larger effects on depression than plant closings, particularly among men. The findings generally support these hypotheses. The authors found that men had significant increases in depression as a result of layoffs, but not as a result of plant closings, whereas the reverse was true among women.