IDEAS home Printed from https://ideas.repec.org/a/eee/ehbiol/v49y2023ics1570677x23000126.html
   My bibliography  Save this article

The financial situation before and after first-time psychiatric in-patient diagnosis of schizophrenia spectrum, bipolar, and major depressive disorder

Author

Listed:
  • Eliason, Marcus

Abstract

Schizophrenia spectrum, bipolar, and major depressive disorders are severe mental illnesses (SMIs) that not only entail great suffering for those affected but also major societal costs. In this study, I use administrative register data to provide a detailed picture of the financial situation of people with SMI in Sweden during a period of ±10 years around first-time psychiatric in-patient diagnosis of schizophrenia spectrum, bipolar, and major depressive disorders. Receiving a diagnosis was associated with a considerable drop in earnings, which was largely compensated for by social transfers: mainly sickness and disability insurance. However, there were also large and increasing pre-diagnosis earnings gaps, relative to matched comparison groups, especially among those with schizophrenia spectrum disorders. These gaps were to a lesser extent compensated for by social transfers. Consequently, there were permanent and increasing – due to lost earnings growth – income differentials. Hence, findings in previous studies are confirmed: even in an advanced welfare state, people with SMI – especially those with schizophrenia – have an extremely weak position on the labour market and an equally difficult financial situation.

Suggested Citation

  • Eliason, Marcus, 2023. "The financial situation before and after first-time psychiatric in-patient diagnosis of schizophrenia spectrum, bipolar, and major depressive disorder," Economics & Human Biology, Elsevier, vol. 49(C).
    • Handle: RePEc:eee:ehbiol:v:49:y:2023:i:c:s1570677x23000126
    DOI: 10.1016/j.ehb.2023.101231
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1570677X23000126
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ehb.2023.101231?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Souvik Banerjee & Pinka Chatterji & Kajal Lahiri, 2017. "Effects of Psychiatric Disorders on Labor Market Outcomes: A Latent Variable Approach Using Multiple Clinical Indicators," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 184-205, February.
    2. Pinka Chatterji & Margarita Alegría & Mingshan Lu & David Takeuchi, 2007. "Psychiatric disorders and labor market outcomes: evidence from the National Latino and Asian American Study," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1069-1090.
    3. Huajie Jin & Iris Mosweu, 2017. "The Societal Cost of Schizophrenia: A Systematic Review," PharmacoEconomics, Springer, vol. 35(1), pages 25-42, January.
    4. Huajie Jin & Paul McCrone, 2015. "Cost-of-Illness Studies for Bipolar Disorder: Systematic Review of International Studies," PharmacoEconomics, Springer, vol. 33(4), pages 341-353, April.
    5. Michael T. French & M. Christopher Roebuck & Pierre Kébreau Alexandre, 2001. "Illicit Drug Use, Employment, and Labor Force Participation," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 349-368, October.
    6. 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.
    7. Wolfe, Barbara & Song, Jieun & Greenberg, Jan S. & Mailick, Marsha R., 2014. "Ripple effects of developmental disabilities and mental illness on nondisabled adult siblings," Social Science & Medicine, Elsevier, vol. 108(C), pages 1-9.
    8. Greve, Jane & Nielsen, Louise Herrup, 2013. "Useful beautiful minds—An analysis of the relationship between schizophrenia and employment," Journal of Health Economics, Elsevier, vol. 32(6), pages 1066-1076.
    9. Paul Frijters & David W. Johnston & Michael A. Shields, 2014. "The Effect Of Mental Health On Employment: Evidence From Australian Panel Data," Health Economics, John Wiley & Sons, Ltd., vol. 23(9), pages 1058-1071, September.
    10. Bubonya, Melisa & Cobb-Clark, Deborah A. & Ribar, David C., 2019. "The reciprocal relationship between depressive symptoms and employment status," Economics & Human Biology, Elsevier, vol. 35(C), pages 96-106.
    11. Silvia Coretti & Filippo Rumi & Americo Cicchetti, 2019. "The Social Cost of Major Depression. A Systematic Review," Review of European Studies, Canadian Center of Science and Education, vol. 11(1), pages 1-73, December.
    12. Michael T. French & M. Christopher Roebuck & Pierre Kébreau Alexandre, 2001. "Illicit Drug Use, Employment, and Labor Force Participation," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 349-368, October.
    13. Pinka Chatterji & Margarita Alegría & Mingshan Lu & David Takeuchi, 2007. "Psychiatric disorders and labor market outcomes: evidence from the National Latino and Asian American Study," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1069-1090, October.
    14. Chatterji, Pinka & Alegria, Margarita & Takeuchi, David, 2011. "Psychiatric disorders and labor market outcomes: Evidence from the National Comorbidity Survey-Replication," Journal of Health Economics, Elsevier, vol. 30(5), pages 858-868.
    15. Sophie Mitra & Kristine Jones, 2017. "The impact of recent mental health changes on employment: new evidence from longitudinal data," Applied Economics, Taylor & Francis Journals, vol. 49(1), pages 96-109, January.
    16. Ringdal, Charlotte & Rootjes, Frank, 2022. "Depression and labor supply: Evidence from the Netherlands," Economics & Human Biology, Elsevier, vol. 45(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mark L Bryan & Nigel Rice & Jennifer Roberts & Cristina Sechel, 2022. "Mental Health and Employment: A Bounding Approach Using Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 84(5), pages 1018-1051, October.
    2. Ringdal, Charlotte & Rootjes, Frank, 2022. "Depression and labor supply: Evidence from the Netherlands," Economics & Human Biology, Elsevier, vol. 45(C).
    3. Diby, Akissi S. & Lengagne, Pascale & Regaert, Camille, 2021. "Employment Vulnerability of People With Severe Mental Illness," Health Policy, Elsevier, vol. 125(2), pages 269-275.
    4. Bryan, M.; & Roberts, J.; & Sechel, C.;, 2019. "The Effect of Mental Health on Employment:Accounting for Selection Bias," Health, Econometrics and Data Group (HEDG) Working Papers 19/14, HEDG, c/o Department of Economics, University of York.
    5. Elena Lagomarsino & Alessandro Spiganti, 2020. "No gain in pain: psychological well-being, participation, and wages in the BHPS," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(9), pages 1375-1389, December.
    6. Henri Salokangas, 2021. "Exploring the labor market consequences of psychiatric disorders: An event study approach," Discussion Papers 148, Aboa Centre for Economics.
    7. Germinario, Giuseppe & Amin, Vikesh & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2022. "What can we learn about the effect of mental health on labor market outcomes under weak assumptions? Evidence from the NLSY79," Labour Economics, Elsevier, vol. 79(C).
    8. Bubonya, Melisa & Cobb-Clark, Deborah A. & Ribar, David C., 2017. "The Bilateral Relationship between Depressive Symptoms and Employment Status," IZA Discussion Papers 10653, Institute of Labor Economics (IZA).
    9. Henri Salokangas, 2021. "Mental disorders and lifetime earnings," Discussion Papers 145, Aboa Centre for Economics.
    10. Monica Deza & Johanna Catherine Maclean & Keisha T. Solomon, 2020. "Local Access to Mental Healthcare and Crime," NBER Working Papers 27619, National Bureau of Economic Research, Inc.
    11. INUI Tomohiko & KAWAKAMI Atsushi & MA Xin Xin & ZHAO Meng, 2019. "Does Mental Health Affect Labor Market Outcomes? Evidence from a National Representative Survey in Japan," Discussion papers 19061, Research Institute of Economy, Trade and Industry (RIETI).
    12. Deza, Monica & Maclean, Johanna Catherine & Solomon, Keisha, 2022. "Local access to mental healthcare and crime," Journal of Urban Economics, Elsevier, vol. 129(C).
    13. Messel, Matt & Swensen, Isaac & Urban, Carly, 2023. "The effects of expanding access to mental health services on SS(D)I applications and awards," Labour Economics, Elsevier, vol. 81(C).
    14. Nafilyan, Vahé & Pabon, Mauricio Avendano & de Coulon, Augustin, 2021. "The Causal Impact of Depression on Cognitive Functioning: Evidence from Europe," IZA Discussion Papers 14049, Institute of Labor Economics (IZA).
    15. Danusha Jayawardana & Brenda Gannon & Jenny Doust & Gita D. Mishra, 2023. "Excess healthcare costs of psychological distress in young women: Evidence from linked national Medicare claims data," Health Economics, John Wiley & Sons, Ltd., vol. 32(3), pages 715-734, March.
    16. Souvik Banerjee & Anirban Basu, 2021. "Estimating Endogenous Treatment Effects Using Latent Factor Models with and without Instrumental Variables," Econometrics, MDPI, vol. 9(1), pages 1-25, March.
    17. Thomas Barnay & Éric Defebvre, 2019. "Gender Differences in the Influence of Mental Health on Job Retention," LABOUR, CEIS, vol. 33(4), pages 507-532, December.
    18. Stéphane Mahuteau & Rong Zhu, 2016. "Crime Victimisation and Subjective Well‐Being: Panel Evidence From Australia," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1448-1463, November.
    19. Johnston, David W. & Schurer, Stefanie & Shields, Michael A., 2011. "Evidence on the Long Shadow of Poor Mental Health across Three Generations," IZA Discussion Papers 6014, Institute of Labor Economics (IZA).
    20. Noonan, Kelly & Corman, Hope & Reichman, Nancy E., 2016. "Effects of maternal depression on family food insecurity," Economics & Human Biology, Elsevier, vol. 22(C), pages 201-215.

    More about this item

    Keywords

    Schizophrenia spectrum disorder; Bipolar disorder; Major depressive disorder; Social insurances; Labour market situation;
    All these keywords.

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ehbiol:v:49:y:2023:i:c:s1570677x23000126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622964 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.