Job Insecurity, Debt Burdens, and Individual Health

Job insecurity exerts negative effects on self-reported health. Using the Spanish Survey of Household Finances for 2011–2014, this paper asks whether and to what extent debt burdens enhance these detrimental health effects. To address potential endogeneity problems surrounding question, adopts Deb Trivedi’s (Econometrics Journal, 9, 307–331, 2006) econometric approach. The results show that effect job self-assessed is exacerbated if individual over-indebted. Moreover, role over-indebtedness differs between types debt, with non-mortgage debts causing larger losses than mortgage debts. Thus, concerns about should not be decoupled from increasing household indebtedness, policy measures intended improve welfare consider both phenomena together.