Mental disorders and lifetime earnings

Arbeitspapier

In advanced countries in particular, the mental well-being of adolescents and young adults is gaining increased amount of attention. Yet little is known about lifetime labor market costs attributable to mental disorders nor the related heterogeneity by the age of onset of psychiatric conditions. This paper contributes by documenting the lifetime labor market performance deficits related to severe mental health-related problems. Using longitudinal socio-economic and health register data with a 45-year follow-up, I document that psychiatric admission history is associated with substantial losses in labor market performance. Age of first admission matters: having the first admission one year earlier than the affected controls is associated with AC 10 000 - 13 000 loss. Overall, results provide an economic rationale for early intervention in mental illnesses as deficits in the labor market are larger, the earlier first psychiatric admissions emerge.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion paper ; No. 145

Classification and Topics

• Classification: Wirtschaft ; Health: General ; Labor Force and Employment, Size, and Structure ; Wage Level and Structure; Wage Differentials
• Subject: Mental disorders ; Employment ; Wage differentials

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Salokangas, Henri
• Event: Veröffentlichung
• (who): Aboa Centre for Economics (ACE)
• (where): Turku
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/265183
• Last update: 10.03.2025, 11:42 AM CET