This study aims to assess empirically whether being employed or returning to work is beneficial for all in terms of mental health, especially for those who already suffer from a longstanding illness or disability. We use longitudinal surveys from Australia, Canada, Switzerland and the UK to estimate panel data models that link decisions regarding labour market choices to health developments. To allow for state dependence of mental health, a dynamic panel model is used. The longitudinal analysis shows that non-employment generally is worse for mental health than working. The mental-health payoff to employment varies depending on the type of employment contract and working conditions. In particular, the mental health benefits for inactive individuals who obtain a non-standard job appear to be smaller than for those moving into standard employment arrangements, even after controlling for pre-existing mental health problems.

The UK Government places ever-greater weight on performance assessment of local public bodies through comprehensive performance assessments (CPA). However, the CPA assessment framework has been criticised for its disregard of local factors that are beyond the control of local authorities but that affect their performance. In this article, the assessment framework is described and three different studies are appraised that have investigated the link between deprivation, as one of these external constraints, and CPA performance. Suggestions are developed as to how the analysis can be improved, by extending the choice of dependent variables and explanatory variables so as to be able to use panel data as the investigative method.