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Adolescents’ Mental Health and Human Capital: The Role of Socioeconomic Rank

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  • Michaela Paffenholz

Abstract

I provide evidence on the causal effects of a student’s relative socioeconomic status during high school on their mental health and human capital development. Leveraging data from representative US high schools, I utilize between-cohort differences in the distributions of socioeconomic status within schools in a linear fixed effects model to identify a causal rank effect. I find that a higher rank during high school improves a student’s depression scores, cognitive ability, self-esteem and popularity. The rank effects are persistent with long-lasting consequences for adult depression and college attainment. Additional analyses emphasize the role of inequality in exacerbating these rank effects.

Suggested Citation

  • Michaela Paffenholz, 2023. "Adolescents’ Mental Health and Human Capital: The Role of Socioeconomic Rank," CESifo Working Paper Series 10248, CESifo.
    • Handle: RePEc:ces:ceswps:_10248
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    References listed on IDEAS

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    Cited by:

    1. Bertoni, M.; & Marin-Lopez, B.A.; & Sanz-de-Galdeano, A.;, 2023. "Subjective Gender-Based Patterns in ADHD Diagnosis," Health, Econometrics and Data Group (HEDG) Working Papers 23/17, HEDG, c/o Department of Economics, University of York.

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    More about this item

    Keywords

    rank; mental health; higher education;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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