Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265183 
Year of Publication: 
2021
Series/Report no.: 
Discussion paper No. 145
Publisher: 
Aboa Centre for Economics (ACE), Turku
Abstract: 
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.
Subjects: 
Mental disorders
Employment
Wage differentials
JEL: 
I10
J21
J31
Document Type: 
Working Paper

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