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Racial/Ethnic Differences in the Effects of Psychiatric Disorders on Employment

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  • Pinka Chatterji

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  • Margarita Alegria
  • David Takeuchi

Abstract

Prior research on the disability burden of mental disorders has focused on the non-Latino white population, despite the growing size and importance of racial/ethnic minorities in the labor market and in the US population as a whole. This paper is one of the first to test for racial/ethnic differences in the effects of mental disorder on employment outcomes with data from the National Institute of Mental Health (NIMH) Collaborative Psychiatric Epidemiological Studies (CPES). We find that recent psychiatric disorder is associated with a reduction in the likelihood of employment for men of all racial/ethnic groups relative to non-Latino whites with the possible exception of Caribbeans. These findings are driven by the effects of anxiety and affective disorders. For females, only affective disorders appear to detract from employment overall. Much larger negative effects are found for Latino women with anxiety disorders. Copyright International Atlantic Economic Society 2009

Suggested Citation

  • Pinka Chatterji & Margarita Alegria & David Takeuchi, 2009. "Racial/Ethnic Differences in the Effects of Psychiatric Disorders on Employment," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 37(3), pages 243-257, September.
  • Handle: RePEc:kap:atlecj:v:37:y:2009:i:3:p:243-257
    DOI: 10.1007/s11293-009-9182-x
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    4. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
    5. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    6. Richard Frank & Paul Gertler, 1991. "An Assessment of Measurement Error Bias for Estimating the Effect of Mental Distress on Income," Journal of Human Resources, University of Wisconsin Press, vol. 26(1), pages 154-164.
    7. S.K. Dube & U.C. Mohanty, 2004. "Editorial," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 31(2), pages 317-317, February.
    8. Berndt, Ernst R. & Finkelstein, Stan N. & Greenberg, Paul E. & Howland, Robert H. & Keith, Alison & Rush, A. John & Russell, James & Keller, Martin B., 1998. "Workplace performance effects from chronic depression and its treatment," Journal of Health Economics, Elsevier, vol. 17(5), pages 511-535, October.
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    Citations

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    Cited by:

    1. Deuchert, Eva & Kauer, Lukas & Meisen Zannol, Flurina, 2011. "Would you train me with my mental illness? Evidence from a discrete choice experiment," Economics Working Paper Series 1141, University of St. Gallen, School of Economics and Political Science.
    2. Atsuko Tanaka & Laurel Beck, "undated". "Mental Well-being of the Bereaved and Labor Market Outcomes," Working Papers 2015-24, Department of Economics, University of Calgary, revised 19 Nov 2015.

    More about this item

    Keywords

    Racial/ethnic minorities; Mental health; Psychiatric disorders; Labor market outcomes; I12; J24; J15;

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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