Labour Market Problems, and Psychological Well‐Being: A Panel Study of Canadian Youth in Transition From School to Work∗

Abstract
Four‐year panel survey data are used to examine the effects on psychological well‐being of unemployment, underemployment, educational satisfaction, and position in the transition from school to work among Canadian youth. Controlling on social support and baseline psychological status, labour market problems are found to have small, significant negative effects on feelings of self‐esteem, powerlessness, and depression among high school graduates, but not among university graduates. The effects of educational satisfaction and transition status are less clear.

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