Rethinking worrying about the stock market, but instead, anxious about employment

Using Engleberg's and Parsons's (2016) study (E&P) relating stock prices and hospital admissions for NJ, mental disease admits appear affected. One deviation decrease in returns of NJ/NYC-based companies increases average daily mental disorder admits by month by 1.7% above the expected level. However, the study raises issues concerning E&P's state-based stock price verses hospital admit conclusions by examining NJ counties’ unemployment rates compared to stock market effects on hospital admissions. Stock market effects are weak in rural and low-income counties unless near NYC. Further, employment is a stronger explanation than stock prices and even their combination for all counties. A one percent decrease in monthly employment rate increases admits above the expected level by 3.6% across all counties. Stock prices thus seem an employment or economic proxy for NJ, rather than an independent variable.