The effect of unemployment on the mental health of spouses - Evidence from plant closures in Germany

► I analyze the effect of individual's unemployment on the mental health of spouses. ► I find that unemployment decreases also the mental health of spouses. ► These decreases are almost as strong as for the directly affected individuals. ► The paper constitutes one of the first applications of entropy balancing. ► Previous studies underestimate the public health costs of unemployment.