Out of sight but not out of mind: Home countries’ macroeconomic volatilities and immigrants’ mental health
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This is the peer reviewed version of the following article: Nguyen, H. and Connelly, L. 2017. Out of sight but not out of mind: Home countries’ macroeconomic volatilities and immigrants’ mental health. Health Economics [In Press], which has been published in final form at 10.1002/hec.3532 This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving at http://olabout.wiley.com/WileyCDA/Section/id-828039.html
We provide the first empirical evidence that better economic performances by immigrants’ countries of origin, as measured by lower CPI or higher GDP, 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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