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The Impact of Psychiatric Disorders on Labor Market Outcomes

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Author Info
Susan L. Ettner
Richard G. Frank
Ronald C. Kessler
Abstract

Data on 2225 men and 2401 women from the National Comorbidity Survey were used to examine the impact of psychiatric disorders on employment and conditional work hours and income. Two-stage instrumental variables methods were used to correct for the potential endogeneity of psychiatric disorders. The instruments used (the psychiatric disorder history of the respondent and respondent's parents) passed tests of the overidentifying restrictions. Psychiatric disorders significantly reduced employment among both men and women. Evidence was also found of small reductions in the conditional work hours of men and a substantial drop in the conditional earnings of men and women, although these findings were somewhat more sensitive to the estimation methods and specification of the model.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5989.

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Date of creation: Apr 1997
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Handle: RePEc:nbr:nberwo:5989

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Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
I12 - Health, Education, and Welfare - - Health - - - Health Production

References listed on IDEAS
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  1. Bartel, Ann & Taubman, Paul, 1986. "Some Economic and Demographic Consequences of Mental Illness," Journal of Labor Economics, University of Chicago Press, vol. 4(2), pages 243-56, April. [Downloadable!] (restricted)
  2. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-55, March-Apr. [Downloadable!] (restricted)
  3. Berger, Mark C & Leigh, J Paul, 1988. "The Effect of Alcohol Use on Wages," Applied Economics, Taylor and Francis Journals, vol. 20(10), pages 1343-51, October.
  4. Chirikos, Thomas N. & Nestel, Gilbert, 1984. "Economic determinants and consequences of self-reported work disability," Journal of Health Economics, Elsevier, vol. 3(2), pages 117-136, August. [Downloadable!] (restricted)
  5. Mullahy, John & Sindelar, Jody L, 1993. "Alcoholism, Work, and Income," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 494-520, July. [Downloadable!] (restricted)
  6. Mullahy, John & Sindelar, Jody L, 1991. "Gender Differences in Labor Market Effects of Alcoholism," American Economic Review, American Economic Association, vol. 81(2), pages 161-65, May. [Downloadable!] (restricted)
  7. Bartel, Ann & Taubman, Paul, 1979. "Health and Labor Market Success: The Role of Various Diseases," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 1-8, February. [Downloadable!] (restricted)
  8. Kaestner, Robert, 1991. "The Effect of Illicit Drug Use on the Wages of Young Adults," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 381-412, October. [Downloadable!] (restricted)
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  9. French, Michael T. & Zarkin, Gary A., 1995. "Is moderate alcohol use related to wages? Evidence from four worksites," Journal of Health Economics, Elsevier, vol. 14(3), pages 319-344, August. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Erdal Tekin & Sara Markowitz, 2005. "Suicidal Behavior and the Labor Market Productivity of Young Adults," NBER Working Papers 11238, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Cathy J. Bradley & David Neumark & Zhehui Luo & Heather L. Bednarek, 2005. "Employment-Contingent Health Insurance, Illness, and Labor Supply of Women: Evidence from Married Women with Breast Cancer," NBER Working Papers 11304, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. King, Jeffrey & Liebman, Jeffrey & Katz, Lawrence & Sanbonmatsu, Lisa, 2004. "Moving to Opportunity and Tranquility: Neighborhood Effects on Adult Economic Self-Sufficiency and Health from a Randomized Housing Voucher Experiment," Working Paper Series rwp04-035, Harvard University, John F. Kennedy School of Government. [Downloadable!]
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  4. Thomas DeLeire & Willard Manning, 2004. "Labor market costs of illness: prevalence matters," Health Economics, John Wiley & Sons, Ltd., vol. 13(3), pages 239-250. [Downloadable!]
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  5. Andrew Clark, 2001. "Unemployment As A Social Norm: Psychological Evidence from Panel Data," DELTA Working Papers 2001-17, DELTA (Ecole normale supérieure). [Downloadable!]
    Other versions:
  6. Matthias Deschryvere, 2004. "Health and Retirement. An Update of the Literature," Discussion Papers 932, The Research Institute of the Finnish Economy. [Downloadable!]
  7. repec:ese:iserwp: is not listed on IDEAS
  8. Kevin Hollenbeck & Jean Kimmel, 2001. "The Returns to Education and Basic Skills Training for Individuals with Poor Health or Disability," Staff Working Papers 01-72, W.E. Upjohn Institute for Employment Research. [Downloadable!] (restricted)
  9. Pinka Chatterji & Margarita Alegria & David Takeuchi, 2009. "Racial/Ethnic Differences in the Effects of Psychiatric Disorders on Employment," Atlantic Economic Journal, International Atlantic Economic Society, vol. 37(3), pages 243-257, September. [Downloadable!] (restricted)
  10. Cathy J. Bradley & Heather Bednarek & David Neumark, 2001. "Breast Cancer Survival, Work, and Earnings," NBER Working Papers 8134, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. M. Christopher Auld, 2002. "Disentangling the effects of morbidity and life expectancy on labor market outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 471-483. [Downloadable!]
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  12. Ellen Meara & Richard Frank, 2006. "Welfare Reform, Work Requirements, and Employment Barriers," NBER Working Papers 12480, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Richard G. Frank & Ellen Meara, 2009. "The Effect of Maternal Depression and Substance Abuse on Child Human Capital Development," NBER Working Papers 15314, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Jason M. Fletcher, 2008. "Adolescent depression: diagnosis, treatment, and educational attainment," Health Economics, John Wiley & Sons, Ltd., vol. 17(11), pages 1215-1235. [Downloadable!]
  15. Sharone Maital & Shlomo Maital & Abba Schwarts, 1977. "Job Attitudes as Intervening Variables Between Situational Factors and Economic Behavior," Working Papers 481, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  16. Pinka Chatterji & Margarita Alegria & Mingshun Lu & David Takeuchi, 2005. "Psychiatric Disorders and Labor Market Outcomes: Evidence from the National Latino and Asian American Study," NBER Working Papers 11893, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  17. Dhaval Dave & Inas Rashad & Jasmina Spasojevic, 2006. "The Effects of Retirement on Physical and Mental Health Outcomes," NBER Working Papers 12123, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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