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The Effects Of Childhood Adhd On Adult Labor Market Outcomes

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  • Jason M. Fletcher

Abstract

Although several types of mental illness, including substance abuse disorders, have been linked with poor labor market outcomes, no current research has been able to examine the effects of childhood attention deficit/hyperactivity disorder (ADHD). Because ADHD has become one of the most prevalent childhood mental conditions, it is useful to understand the full set of consequences of the illness. This article uses a longitudinal national sample, including sibling pairs, to show the important labor market outcome consequences of ADHD. The employment reduction is between 10 and 14 percentage points, the earnings reduction is approximately 33%, and the increase in social assistance is 15 points, figures that are larger than many estimates of the Black people/White people earnings gap and the gender earnings gap. A small share of the link is explained by educational attainments and co‐morbid health conditions and behaviors. The results also show important differences in labor market consequences by family background and age of onset. These findings, along with similar research showing that ADHD is linked with poor education outcomes and adult crime, suggest the importance of treating childhood ADHD to foster human capital. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • Jason M. Fletcher, 2014. "The Effects Of Childhood Adhd On Adult Labor Market Outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 23(2), pages 159-181, February.
  • Handle: RePEc:wly:hlthec:v:23:y:2014:i:2:p:159-181
    DOI: 10.1002/hec.2907
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    References listed on IDEAS

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    1. James P. Smith, 2009. "The Impact of Childhood Health on Adult Labor Market Outcomes," The Review of Economics and Statistics, MIT Press, vol. 91(3), pages 478-489, August.
    2. Jason M. Fletcher, 2008. "Adolescent depression: diagnosis, treatment, and educational attainment," Health Economics, John Wiley & Sons, Ltd., vol. 17(11), pages 1215-1235.
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    5. Currie, Janet & Stabile, Mark, 2006. "Child mental health and human capital accumulation: The case of ADHD," Journal of Health Economics, Elsevier, vol. 25(6), pages 1094-1118, November.
    6. Paul Gregg & Stephen Machin, 2000. "Child Development and Success or Failure in the Youth Labor Market," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 247-288, National Bureau of Economic Research, Inc.
    7. Rosemary Hyson & Janet Currie, 1999. "Is the Impact of Health Shocks Cushioned by Socioeconomic Status? The Case of Low Birthweight," American Economic Review, American Economic Association, vol. 89(2), pages 245-250, May.
    8. Fletcher, Jason & Wolfe, Barbara, 2008. "Child mental health and human capital accumulation: The case of ADHD revisited," Journal of Health Economics, Elsevier, vol. 27(3), pages 794-800, May.
    9. Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
    10. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of Psychiatric Disorders on Labor Market Outcomes," NBER Working Papers 5989, National Bureau of Economic Research, Inc.
    11. Jason M. Fletcher, 2008. "Adolescent depression: diagnosis, treatment, and educational attainment," Health Economics, John Wiley & Sons, Ltd., vol. 17(11), pages 1215-1235, November.
    12. Janet Currie & Mark Stabile & Phongsack Manivong & Leslie L. Roos, 2010. "Child Health and Young Adult Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    13. Fletcher, Jason M., 2009. "Childhood mistreatment and adolescent and young adult depression," Social Science & Medicine, Elsevier, vol. 68(5), pages 799-806, March.
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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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