The Impact of Job Loss on Health-Related Outcomes During the COVID-19 Pandemic

In this paper, I explore the effects of job loss during the COVID-19 pandemic on self-reported general and mental health conditions and health insurance coverage. Using Medical Expenditure Panel Survey data from 2018-2022, I evaluate the effects of job loss on these health-related outcomes by conducting a year-over-year analysis. I also examine changes in job loss effects during the pandemic by performing a difference-in-differences analysis. Overall, I find that job loss is associated with a higher likelihood of having fair or poor general and mental health, a higher likelihood to have Medicaid/SCHIP, and a lower likelihood to have private insurance. These findings are consistent with existing literature. When isolating job losses that occurred during the pandemic, I do not observe any statistically significant differences. I attribute this, in part, to government interventions during the COVID-19 pandemic whose goal was to alleviate the financial and health-related burdens of job loss. These measures include the distribution of stimulus payments and the implementation of programs designed to help people maintain health insurance coverage despite unemployment. My findings highlight the critical role of government intervention in mitigating the negative health-related impacts of job loss during periods of economic downturn. While job loss remains associated with poorer health outcomes and shifts in insurance coverage, the lack of additional adverse effects during the pandemic suggests timely policy responses can play a protective role. Therefore, this research highlights the importance of adaptive public health and economic policies to support vulnerable populations during future economic crises.