We examined the relationship between mental health and labor participation. Analysis was based on the Australian National Health Survey, providing a nationally representative sample using 14788 observations. Accounting for endogeneity, analysis revealed that females were almost twice more responsive to changes in mental health on labor participation compared to males. Among Australians who did not take medication for mental wellbeing, poorer levels of mental health was associated with a reduction in the probability of labor participation. Among females with poorer mental health, taking any medication for mental well-being led to a decrease in the probability of labor participation. This relationship was not significant for males