Causal effects of promotion to managerial positions on mental health and satisfaction in Japanese male workers.

Abstract

Purpose: We estimated the static and dynamic effects of promotion to managerial positions on mental health and satisfaction using the recent estimation method; we addressed the gap in extant research by considering the heterogeneity in treatment timing to reconfirm evidence regarding the causal effects of promotion.

Methods: We used a modified estimation method of two-way fixed effects recommended by (Callaway and Sant'Anna, J Econom 225:200-230, 2021). To check for robustness, we compared the analyses using propensity sample matching, an alternative treatment timing heterogeneity-robust analysis, and a normal two-way fixed effects event study. We used four years of complete panel data on a sample of 1454 Japanese males (5816 overall).

Results: The results indicated that becoming a manager worsened mental health with a two-year lag. We tested the effects of promotion to managerial positions on variables shown in previous studies to have negative effects on mental health (e.g., increased working hours) and positive effects (e.g., increased job role clarity) as outcomes to explore the mechanisms. Some of both variables indicate statistical significance. These results were robust.

Conclusion: The promotion to managerial positions deteriorated mental health with a two-year lag. Promotion to managerial positions exhibited both positive and negative effects. The findings have potential implications for firms' human resources allocation.