Work and well-being: a Nordic panel analysis of unemployment and its association with mental disorders

Purpose This study examines the association between unemployment and mental health within the Nordic context, a region characterized by strong social welfare systems. By analyzing multiple mental health outcomes, the study seeks to identify vulnerabilities as well as potential protective factors specific to this setting. Design/methodology/approach A quantitative panel design is employed to investigate the relationship between unemployment and mental health in five Nordic countries over the period 1970–2020. Using a panel fixed-effects regression model, the study provides a comprehensive understanding of unemployment’s impact across a wide range of mental health indicators. Findings Unemployment shows a significant positive association with most mental health disorders in the Nordic countries, with the exception of alcohol use disorders. The results suggest that robust Nordic institutional arrangements may mitigate some of the adverse mental health impacts of unemployment, indicating a potential buffering effect. Originality/value This study offers a novel and comprehensive panel analysis of the unemployment–mental health relationship in the Nordic region, covering multiple mental health indicators over a long timeframe. It contributes to the literature by examining this association within a distinctive institutional context and by identifying potential mitigating factors.