IDEAS home Printed from https://ideas.repec.org/a/eee/jhecon/v73y2020ics016762962030076x.html
   My bibliography  Save this article

Employment effects of healthcare policy: Evidence from the 2007 FDA black box warning on antidepressants

Author

Listed:
  • Bütikofer, Aline
  • Cronin, Christopher J.
  • Skira, Meghan M.

Abstract

Public policies aimed at improving health may have indirect effects on outcomes such as education and employment. We study the labor market effects of the US Food and Drug Administration's 2007 expanded black box warning on antidepressants. Our difference-in-differences estimates imply that the warning reduced employment by 6.1 percent among women aged 35–49 with a history of depression. We explore potential mechanisms and find that antidepressant and psychotherapy use among women aged 35–49 decreased after the warning. Our analysis suggests that the 2007 warning reduced US labor force participation by 0.23 percentage points, leading to $11.8 billion in lost wages.

Suggested Citation

  • Bütikofer, Aline & Cronin, Christopher J. & Skira, Meghan M., 2020. "Employment effects of healthcare policy: Evidence from the 2007 FDA black box warning on antidepressants," Journal of Health Economics, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:jhecon:v:73:y:2020:i:c:s016762962030076x
    DOI: 10.1016/j.jhealeco.2020.102348
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S016762962030076X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jhealeco.2020.102348?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Pradeep Chintagunta & Renna Jiang & Ginger Jin, 2009. "Information, learning, and drug diffusion: The case of Cox-2 inhibitors," Quantitative Marketing and Economics (QME), Springer, vol. 7(4), pages 399-443, December.
    2. Ludwig, Jens & Marcotte, Dave E. & Norberg, Karen, 2009. "Anti-depressants and suicide," Journal of Health Economics, Elsevier, vol. 28(3), pages 659-676, May.
    3. Harsha Thirumurthy & Joshua Graff Zivin & Markus Goldstein, 2008. "The Economic Impact of AIDS Treatment: Labor Supply in Western Kenya," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 511-552.
    4. Collins, J. Michael & Simon, Kosali I. & Tennyson, Sharon, 2013. "Drug withdrawals and the utilization of therapeutic substitutes: The case of Vioxx," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 148-168.
    5. Cronin, C.J.; Forsstrom, M.P.; Papageorge, N.W.;, 2017. "Mental Health, Human Capital and Labor Market Outcomes," Health, Econometrics and Data Group (HEDG) Working Papers 17/25, HEDG, c/o Department of Economics, University of York.
    6. Irving Kirsch & Brett J Deacon & Tania B Huedo-Medina & Alan Scoboria & Thomas J Moore & Blair T Johnson, 2008. "Initial Severity and Antidepressant Benefits: A Meta-Analysis of Data Submitted to the Food and Drug Administration," PLOS Medicine, Public Library of Science, vol. 5(2), pages 1-9, February.
    7. repec:eee:labchp:v:3:y:1999:i:pc:p:3309-3416 is not listed on IDEAS
    8. 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.
    9. Meltem Daysal, N. & Orsini, C., 2012. "The Miracle Drug : Hormone Replacement Therapy and Labor Market Behavior of Middle-Aged Women," Other publications TiSEM ce29046c-47bf-4f33-87af-3, Tilburg University, School of Economics and Management.
    10. David M. Cutler & Edward L. Glaeser & Karen E. Norberg, 2001. "Explaining the Rise in Youth Suicide," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 219-270, National Bureau of Economic Research, Inc.
    11. Blanchflower, David G. & Oswald, Andrew J., 2016. "Antidepressants and age: A new form of evidence for U-shaped well-being through life," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 46-58.
    12. Kristy Parkinson & Joseph Price & Kosali Simon & Sharon Tennyson, 2014. "The influence of FDA advisory information and black box warnings on individual use of prescription antidepressants," Review of Economics of the Household, Springer, vol. 12(4), pages 771-790, December.
    13. Aline Bütikofer & Meghan M. Skira, 2018. "Missing Work Is a Pain: The Effect of Cox-2 Inhibitors on Sickness Absence and Disability Pension Receipt," Journal of Human Resources, University of Wisconsin Press, vol. 53(1), pages 71-122.
    14. Pierre Azoulay, 2002. "Do Pharmaceutical Sales Respond to Scientific Evidence?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(4), pages 551-594, December.
    15. Susan H. Busch & Ezra Golberstein & Ellen Meara, 2014. "The FDA and ABCs: Unintended Consequences of Antidepressant Warnings on Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 49(3), pages 540-557.
    16. Bradley T. Shapiro, 2018. "Informational Shocks, Off-Label Prescribing, and the Effects of Physician Detailing," Management Science, INFORMS, vol. 64(12), pages 5925-5945, December.
    17. Nicholas W. Papageorge, 2016. "Why medical innovation is valuable: Health, human capital, and the labor market," Quantitative Economics, Econometric Society, vol. 7(3), pages 671-725, November.
    18. Craig L. Garthwaite, 2012. "The Economic Benefits of Pharmaceutical Innovations: The Case of Cox-2 Inhibitors," American Economic Journal: Applied Economics, American Economic Association, vol. 4(3), pages 116-137, July.
    19. Currie, Janet & Madrian, Brigitte C., 1999. "Health, health insurance and the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 50, pages 3309-3416, Elsevier.
    20. Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    21. 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 223-255, March-Apr.
    22. Hilary Hoynes & Douglas L. Miller & Jessamyn Schaller, 2012. "Who Suffers during Recessions?," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 27-48, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 5th October 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-10-05 11:00:05

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Getik, Demid & Meier, Armando N., 2022. "Peer gender and mental health⁎," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 643-659.
    2. Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    3. Grytten, Ola Honningdal, 2020. "Puritan Motivation for Serial Entrepreneurship: The Haugean Example," Discussion Paper Series in Economics 12/2020, Norwegian School of Economics, Department of Economics.
    4. Getik, Demid & Meier, Armando N., 2020. "Peer Gender and Mental Health," Working papers 2020/15, Faculty of Business and Economics - University of Basel.
    5. Lawler, Emily C. & Skira, Meghan M., 2022. "Information shocks and pharmaceutical firms’ marketing efforts: Evidence from the Chantix black box warning removal," Journal of Health Economics, Elsevier, vol. 81(C).
    6. Grytten, Ola Honningdal & Lindmark, Magnus & Minde, Kjell Bjørn, 2020. "Energy Intensity and the Environmental Kuznets Curve," Discussion Paper Series in Economics 11/2020, Norwegian School of Economics, Department of Economics.
    7. Koo Chi, Chang & Jin Choi, Kyoung, 2019. "Performance Measurement in Agency Models," Discussion Paper Series in Economics 5/2019, Norwegian School of Economics, Department of Economics.
    8. Rune Midjord & Tomás Rodríguez Barraquer & Justin Mattias Valasek, 2019. "Robust Information Aggregation Through Voting," CESifo Working Paper Series 7713, CESifo.
    9. Bhuller, Manudeep & Khoury, Laura & Løken, Katrine V., 2021. "Prison, Mental Health and Family Spillovers," Discussion Paper Series in Economics 19/2021, Norwegian School of Economics, Department of Economics.
    10. Sumedha Gupta & Thuy D. Nguyen & Patricia R. Freeman & Kosali I. Simon, 2020. "Competitive Effects of Federal and State Opioid Restrictions: Evidence from the Controlled Substance Laws," NBER Working Papers 27520, National Bureau of Economic Research, Inc.
    11. Wang, Zongrun & Zhou, Ling & Mi, Yunlong & Shi, Yong, 2022. "Measuring dynamic pandemic-related policy effects: A time-varying parameter multi-level dynamic factor model approach," Journal of Economic Dynamics and Control, Elsevier, vol. 139(C).
    12. Grytten, Ola Honningdal & Koilo, Viktoriia, 2019. "Evidence of the Environmental Kuznets Curve in Emerging Eastern European Economies," Discussion Paper Series in Economics 11/2019, Norwegian School of Economics, Department of Economics.

    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. Jeon, Sung-Hee & Pohl, R. Vincent, 2019. "Medical innovation, education, and labor market outcomes of cancer patients," Journal of Health Economics, Elsevier, vol. 68(C).
    2. Lawler, Emily C. & Skira, Meghan M., 2022. "Information shocks and pharmaceutical firms’ marketing efforts: Evidence from the Chantix black box warning removal," Journal of Health Economics, Elsevier, vol. 81(C).
    3. Aline Bütikofer & Meghan M. Skira, 2018. "Missing Work Is a Pain: The Effect of Cox-2 Inhibitors on Sickness Absence and Disability Pension Receipt," Journal of Human Resources, University of Wisconsin Press, vol. 53(1), pages 71-122.
    4. Strulik, Holger, 2019. "An economic theory of depression and its impact on health behavior and longevity," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 269-287.
    5. 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.
    6. Meltem Daysal N. & Orsini Chiara, 2015. "Spillover Effects of Drug Safety Warnings on Preventive Health Care Use," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(1), pages 1-30, January.
    7. Louis‐Philippe Beland & Abel Brodeur & Derek Mikola & Taylor Wright, 2022. "The short‐term economic consequences of COVID‐19: Occupation tasks and mental health in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 214-247, February.
    8. Melisa Bubonya & Deborah A. Cobb-Clark & David C. Ribar, 2017. "The Bilateral Relationship between Depressive Symptoms and Employment Status," Melbourne Institute Working Paper Series wp2017n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    9. Meltem Daysal, N. & Orsini, C., 2012. "Spillover Effects of Drug Safety Warnings on Health Behavior," Discussion Paper 2012-025, Tilburg University, Center for Economic Research.
    10. Johanna Catherine Maclean & Justine Mallatt & Christopher J. Ruhm & Kosali Simon, 2022. "The Opioid Crisis, Health, Healthcare, and Crime: A Review of Quasi-Experimental Economic Studies," The ANNALS of the American Academy of Political and Social Science, , vol. 703(1), pages 15-49, September.
    11. Melvin Stephens, Jr. & Desmond J. Toohey, 2018. "The Impact of Health on Labor Market Outcomes: Experimental Evidence from MRFIT," NBER Working Papers 24231, National Bureau of Economic Research, Inc.
    12. Anne-Line Koch Helsø & Mr. Nicola Pierri & Adelina Yanyue Wang, 2019. "The Economic Impact of Healthcare Quality," IMF Working Papers 2019/173, International Monetary Fund.
    13. Bradley, Cathy J. & Bednarek, Heather L. & Neumark, David, 2002. "Breast cancer survival, work, and earnings," Journal of Health Economics, Elsevier, vol. 21(5), pages 757-779, September.
    14. Rahi Abouk & Keshar M. Ghimire & Johanna Catherine Maclean & David Powell, 2023. "Pain Management and Work Capacity: Evidence From Workers’ Compensation and Marijuana Legalization," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(3), pages 737-770, June.
    15. Volha Lazuka, 2022. "Household and individual economic responses to different health shocks: The role of medical innovations," Papers 2206.03306, arXiv.org, revised Nov 2022.
    16. Giuliano Masiero & Fabrizio Mazzonna & Sandro Steinbach & Olaf Verbeek, 2019. "The effect of local growth in antidepressant consumption on mental health outcomes," IdEP Economic Papers 1902, USI Università della Svizzera italiana.
    17. Christopher Cronin & Matthew Forsstrom & Nicholas Papageorge, 2017. "Mental Health, Human Capital and Labor Market Outcomes," CINCH Working Paper Series 1704, Universitaet Duisburg-Essen, Competent in Competition and Health.
    18. 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.
    19. Deschryvere, Matthias, 2004. "Health and Retirement. An Update of the Literature," Discussion Papers 932, The Research Institute of the Finnish Economy.
    20. Béland, Louis-Philippe & Brodeur, Abel & Wright, Taylor, 2020. "The Short-Term Economic Consequences of COVID-19: Exposure to Disease, Remote Work and Government Response," GLO Discussion Paper Series 524, Global Labor Organization (GLO).

    More about this item

    Keywords

    Mental health; Employment; Antidepressants; Black box warnings;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

    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:jhecon:v:73:y:2020:i:c:s016762962030076x. 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/505560 .

    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.