IDEAS home Printed from https://ideas.repec.org/a/eee/socmed/v53y2001i1p21-27.html
   My bibliography  Save this article

Estimating the employment and earnings costs of mental illness: recent developments in the United States

Author

Listed:
  • Marcotte, Dave E.
  • Wilcox-Gök, Virginia

Abstract

Substantial attention has recently been focused on both the prevalence and consequences of mental illness. Generally, public interest in the costs of mental illness has been limited to the direct costs of treating the mentally ill. In this paper, we consider the magnitude and importance of a major component of the indirect costs of mental illness: employment and earnings losses. We first describe the technical difficulties involved in estimating these costs. We then describe new data and recent advances in the United States that have improved our ability to make such estimates. Our conclusions from the recent research are that each year in the United States 5-6 million workers between the ages of 16 and 54 lose, fail to seek, or cannot find employment as a consequence of mental illness. Among those who do work, we estimate that mental illness decreases annual income by an amount between $3500 and $6000. We then discuss an emerging challenge to the traditional method for arriving at such estimates: the friction cost approach. We describe both the conceptual and technical differences between the friction cost method and the traditional human capital approach. We conclude that while economic context has much to do with whether one relies on human capital or friction cost estimates, each can offer useful information about labor market losses due to mental illness.

Suggested Citation

  • Marcotte, Dave E. & Wilcox-Gök, Virginia, 2001. "Estimating the employment and earnings costs of mental illness: recent developments in the United States," Social Science & Medicine, Elsevier, vol. 53(1), pages 21-27, July.
  • Handle: RePEc:eee:socmed:v:53:y:2001:i:1:p:21-27
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0277-9536(00)00312-9
    Download Restriction: Full text for ScienceDirect subscribers only

    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. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-591, September.
    2. Ettner, Susan L., 1996. "New evidence on the relationship between income and health," Journal of Health Economics, Elsevier, vol. 15(1), pages 67-85, February.
    3. Godfrey, Leslie G & McAleer, Michael & McKenzie, Colin R, 1988. "Variable Addition and LaGrange Multiplier Tests for Linear and Logarithmic Regression Models," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 492-503, August.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Ludwig, Jens & Marcotte, Dave E. & Norberg, Karen, 2009. "Anti-depressants and suicide," Journal of Health Economics, Elsevier, vol. 28(3), pages 659-676, May.
    2. Young-Il Kim & Dongyoung Kim, 2016. "Mental Health Cost Of Terrorism: Study Of The Charlie Hebdo Attack In Paris," Working Papers 1613, Research Institute for Market Economy, Sogang University.
    3. Kristin Turney, 2010. "Maternal Depression and Childhood Health Inequalities," Working Papers 1249, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
    4. Farahati, F. & Marcotte, D. E. & Wilcox-Gok, V., 2003. "The effects of parents' psychiatric disorders on children's high school dropout," Economics of Education Review, Elsevier, vol. 22(2), pages 167-178, April.
    5. repec:eee:labeco:v:46:y:2017:i:c:p:150-165 is not listed on IDEAS
    6. 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.
    7. Heflin, Colleen M. & Siefert, Kristine & Williams, David R., 2005. "Food insufficiency and women's mental health: Findings from a 3-year panel of welfare recipients," Social Science & Medicine, Elsevier, vol. 61(9), pages 1971-1982, November.
    8. 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.
    9. Bubonya, Melisa & Cobb-Clark, Deborah A. & Wooden, Mark, 2017. "Mental health and productivity at work: Does what you do matter?," Labour Economics, Elsevier, pages 150-165.
    10. Juan Oliva-Moreno, 2012. "Loss of labour productivity caused by disease and health problems: what is the magnitude of its effect on Spain’s Economy?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(5), pages 605-614, October.
    11. repec:pri:crcwel:wp08-17-ff is not listed on IDEAS
    12. repec:pri:crcwel:wp07-01-ff is not listed on IDEAS
    13. 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 for the Study of Labor (IZA).
    14. Kristin Turney, 2008. "Parental Depression and Children's Developmental Outcomes: The Mediating Influence of Parenting Behavior," Working Papers 1129, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
    15. Eisenberg Daniel & Golberstein Ezra & Hunt Justin B, 2009. "Mental Health and Academic Success in College," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-37, September.
    16. Julien O. Teitler & Nancy E. Reichman, 2007. "Mental Illness as a Barrier to Marriage Among Mothers With Out-of-Wedlock Births," Working Papers 907, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
    17. Marie-Josée J. Mangen & G. Ardine de Wit & Arie H. Havelaar, 2007. "Economic analysis of Campylobacter control in the dutch broiler meat chain," Agribusiness, John Wiley & Sons, Ltd., vol. 23(2), pages 173-192.
    18. repec:pri:crcwel:wp10-08-ff is not listed on IDEAS

    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:socmed:v:53:y:2001:i:1:p:21-27. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/315/description#description .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.