Out of sight but not out of mind: Home countries' macroeconomic volatilities and immigrants' mental health

We provide the first empirical evidence that better economic performances by immigrants' countries of origin, as measured by lower consumer price index (CPI) or higher gross domestic product, improve immigrants' mental health. We use an econometrically‐robust approach that exploits exogeno...

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Bibliographic Details
Published inHealth economics Vol. 27; no. 1; pp. 189 - 208
Main Authors Nguyen, Ha Trong, Connelly, Luke Brian
Format Journal Article
LanguageEnglish
Published England Wiley Periodicals Inc 01.01.2018
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Summary:We provide the first empirical evidence that better economic performances by immigrants' countries of origin, as measured by lower consumer price index (CPI) or higher gross domestic product, improve immigrants' mental health. We use an econometrically‐robust approach that exploits exogenous changes in macroeconomic conditions across immigrants' home countries over time and controls for immigrants' observable and unobservable characteristics. The CPI effect is statistically significant and sizeable. Furthermore, the CPI effect diminishes as the time since emigrating increases. By contrast, home countries' unemployment rates and exchange rate fluctuations have no impact on immigrants' mental health.
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ISSN:1057-9230
1099-1050
DOI:10.1002/hec.3532