@article{Deeming_C-2025_213238,
title = {Evaluating the impact of the UK job retention scheme on mental health and wellbeing using matched difference-in-differences},
author = {Deeming, C. and Akanni, L.},
month = {sep},
year = {2025},
abstract = {In March 2020, the UK implemented the Coronavirus Job Retention Scheme, otherwise known as furlough, to minimize the impact of job losses. The UK furlough protected jobs during the COVID-19 crisis, covering up to 80% of worker’s monthly wage for hours not worked. We evaluate the causal effects of furlough on mental health, life satisfaction and loneliness, considering different labour market transitions in the pandemic. We employ a difference-in-differences (DID) estimator with Propensity Score Matching (PSM) method using data from Understanding Society UK Household Longitudinal Study Mainstage and COVID-19 waves. We show furlough protected workers’ mental health and wellbeing, compared to non-furloughed workers, and unemployment. We also find no detrimental wellbeing effect to being furloughed compared to continuous employment. The wellbeing gains from furlough are particularly evident for those with pre-existing poor mental health and wellbeing conditions. Overall, policies that mitigated negative labour market transitions during the pandemic had positive wellbeing effects on the working population.},
journal = {Fiscal Studies},
publisher = {Wiley},
url = {https://publichealthscotland.scot/id/213238},
}
