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The Impact of Psychiatric Disorders on Employment Across Sectors in Taiwan

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  • Teng-Yuan Hu
  • Shih-Hsuan Chang

Abstract

Taiwan’s 1997 Disabled Citizens Protection Act required organizations to meet minimum employment rates for people with physical or psychiatric disabilities, with lower quotas for the private sector. This study investigates whether the impact of psychiatric disorders, including affective and anxiety disorders, on employment differed across sectors in 2005. Data are drawn from Taiwan's 2005 National Health Interview Survey. The analysis primarily adopts a multinomial probit approach to estimate impacts across sectors among adults aged 18 to 64 by gender. To consider potential endogeneity, it pursues an augmented regression approach. The instrumental variable is the community prevalence of psychiatric disorders. Both exogenous and endogenous results consistently indicate serious consequences in the private sector, especially in its subsector of employed, rather than the public sector, for both males and females. Improving employment for individuals with psychiatric disorders in the private sector, especially for private sector employees, remains a challenge. JEL classification numbers: I18, J21, J24.

Suggested Citation

  • Teng-Yuan Hu & Shih-Hsuan Chang, 2026. "The Impact of Psychiatric Disorders on Employment Across Sectors in Taiwan," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 16(5), pages 1-5.
    • Handle: RePEc:spt:admaec:v:16:y:2026:i:5:f:16_5_5
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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