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Adolescents’ Mental Health and Human Capital: The Role of Socioeconomic Rank

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  • Michaela Paffenholz

Abstract

I provide evidence on the causal effects of a student’s relative socioeconomic status during high school on their mental health and human capital development. Leveraging data from representative US high schools, I utilize between-cohort differences in the distributions of socioeconomic status within schools in a linear fixed effects model to identify a causal rank effect. I find that a higher rank during high school improves a student’s depression scores, cognitive ability, self-esteem and popularity. The rank effects are persistent with long-lasting consequences for adult depression and college attainment. Additional analyses emphasize the role of inequality in exacerbating these rank effects.

Suggested Citation

  • Michaela Paffenholz, 2024. "Adolescents’ Mental Health and Human Capital: The Role of Socioeconomic Rank," CRC TR 224 Discussion Paper Series crctr224_2024_526, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2024_526
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp526
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    More about this item

    Keywords

    mental health; rank; higher educa􀀂on;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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