Limiting the human and economic costs of crises
The research gives new insight into the psychological and economic burden of financial crises, showing that health-related productivity losses may be higher than previously thought."An important finding is that negative mental health effects are not necessarily restricted to people who lose their jobs," Kárpáti says."Employees of struggling firms who manage to keep their jobs can also be negatively affected.
To keep the human and economic costs of financial crises as low as possible, Kárpáti argues for more preventivestrategies."Hopefully, our findings can encourage companies, unions and the government to address problems caused by firm-level financing difficulties in a more proactive way. By offering psychological support, for instance, or by adjusting the workload when companies are going through financial difficulties.
Daniel Kárpáti will defend his PhD thesis"Essays in Finance and Health" on 19 September 2023 at Tilburg University. An article based on the research is scheduled for publication in theCorporate financial frictions and employee mental health.