Labor market institutions and employee self-reported mental health

PurposeThe study draws on emerging research on declining employee mental health, particularly employees with low educational attainment, in human resource management (HRM) and health and tests whether labor market institutions are empirically associated with better mental health among workers from different educational backgrounds.Design/methodology/approachThis study draws on a large national sample of part- and full-time workers and models a conditional relationship between labor market institutions and employee self-rated mental health using ordinary least squares (OLS) models with fixed effects.FindingsThe findings indicate membership in a labor market institution such as a union is positively associated with improved employee mental health, but the relationship is moderated by educational attainment. Union membership is associated with better mental health among employees with low educational attainment and appears to bring these workers up to a level of mental health that is comparable to more highly educated workers, thereby reducing mental health inequality. However, union membership has no effect on the mental health of more highly educated employees.Originality/valueDespite the recognition that declining worker mental health presents challenges for workers, organizations and society, systematic empirical research on institutional mechanisms that may affect mental health is limited. This study draws on data of part- and full-time workers to model the relationship with a sample large enough to specify conditional models to account for heterogeneous relationships conditional on workers' educational attainment. The findings have important implications for our understanding of employee mental health, employment relations and institutional mechanisms to help workers and improve organizational performance.