Consequences of losing a job when young on late life well-being and health in Europe

Given that young people are more likely to be affected by job losses resulting either from the economic crises or other events, like the recent Covid-19 pandemics, a question arises whether the early adverse life course events can have disproportionate effects on later life outcomes. The answer to this question is important from policy perspective both in terms of the identification of vulnerable groups in the face of adverse macro events which have a potential to lead to mass job losses and in terms of understanding of what kind of support may be needed to enable affected individuals to overcome negative consequences of job losses. This paper exploits a unique opportunity provided by the retrospective module of the Survey of Health, Aging and Retirement in Europe to investigate the impact of involuntary job loss experienced at young age on physical and mental health as well as on reported wellbeing measures at age 50 and beyond. Using the growth curve modelling within a panel data framework, we find that early career involuntary job losses have long-lasting negative effects on individual wellbeing, mental health and physical health, both in terms of levels and age trajectories. Partially, this effect can be attributed to changes in health-affecting behaviours – higher levels of BMI and lower levels of physical activity.