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Gender disparities in labor force participation and mental health persist, yet existing frameworks overlook policy synergy—the interaction between family policy and labor market flexibility—in shaping economic and psychological well-being. This study introduces the Life Course Synergy Model (LCSM) to examine how institutional arrangements impact women’s workforce inclusion and mental health. Using a longitudinal fixed-effects design across 17 European countries (n = 32,249 working adults; 5,128 parents), we assess whether flexitime and family policy together reduce the gender gap in depression and boost full-time employment among women, particularly mothers.
Findings show that flexitime alone fully explains the gender gap in depression, while family policy alone has a limited effect. However, for mothers, policy synergy is key: high levels of both flexitime and family policy increase full-time employment as household income rises while also equalizing mental health outcomes across socioeconomic groups. This suggests that mental health itself may be a key determinant of women’s labor market attachment. These findings challenge single-policy approaches, showing that support and flexibility must work together to enhance both labor market attachment and well-being. By linking labor market flexibility and family policy to employment and mental health outcomes, this study demonstrates that integrated institutional designs addressing both economic and psychological well-being are essential to achieving gender equality.