Balancing work and earnings: The long-term impact on mental health

Abstract

Earnings and work hours (e.g., weekly work hours) are key determinants of one's mental health. While higher earnings are linked to better mental health due to reduced financial stress, they may come at the cost of longer work hours harmful for mental health. Therefore, balancing work hours with earnings is crucial for mental health. Using the 2015, 2017, and 2019 waves of the Panel Study of Income Dynamics (N = 6,776), this study explores how one's earnings and work hours combine to influence mental health using growth mixture modeling and a negative binomial regression model, with generalized propensity score weighting for causal inference. The findings reveal that working 40 h a week with earnings two to three times the US federal poverty threshold benefits mental health. However, earning more by working 60 h a week does not provide additional mental health benefits. Additionally, individuals with a history of low earnings face a high risk of psychological distress, even as their earnings improve over time. This risk is similar to that experienced by those consistently earning low incomes. Our findings highlight the importance of clarifying work-earning balance for one's mental health as well as identifying people with mental health needs from a longitudinal perspective.