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Mental Illness and Labour Market Outcomes: Employment and Earnings

Author

Listed:
  • Nielsen-Westergaard, N.
  • Agerbo, E.
  • Eriksson, T.
  • Mortensen, P.B.

Abstract

This paper investigates the effect of severe mental illness on the capacity to hold a job and to earn an income. We find that the employment rate is reduced with about 1/3 during the development of the disease. Hospital admission seems to stabilize employment for all diagnoses. The employment rate after hospital treatment is about 35% lower for cases than for controls and varies somewhat depending on diagnosis. On average, those who keep their jobs have 20% lower earnings compared to a control group. We use longitudinal data from labour market registers covering a 5% sample of the Danish adult population followed from 1976 to 1993 merged with data from the Central Psychiatric Case Register which covers all cases of hospitalizations with psychiatric disorders and their diagnoses since 1969. At the time of admission, we match all patients with people from the same cohort and gender. Both groups are then followed for several years before and after time of admission.

Suggested Citation

  • Nielsen-Westergaard, N. & Agerbo, E. & Eriksson, T. & Mortensen, P.B., 1999. "Mental Illness and Labour Market Outcomes: Employment and Earnings," Papers 99-04, Centre for Labour Market and Social Research, Danmark-.
  • Handle: RePEc:fth:clmsre:99-04
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    References listed on IDEAS

    as
    1. Mark Yuying An & Roberto Ayala, 1996. "Nonparametric Estimation of a Survivor Function with Across- Interval-Censored Data," Econometrics 9611003, EconWPA.
    2. Mark Yuying An, 1996. "Semiparametric Estimation of Willingness to Pay Distributions," Econometrics 9611001, EconWPA.
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    Cited by:

    1. Longhi, Simonetta & Nicoletti, Cheti & Platt, Lucinda, 2009. "Decomposing pay gaps across the wage distribution: investigating inequalities of ethno-religious groups and disabled people," ISER Working Paper Series 2009-31, Institute for Social and Economic Research.
    2. Ortega, Jaime, 2000. "Job Rotation as a Mechanism for Learning," CLS Working Papers 00-4, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    3. Westergaard-Nielsen, Niels, 2001. "Danish Labour Market Policy: Is it worth it?," CLS Working Papers 01-10, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
    4. Pedersen, Peder J. & Smith, Nina, 2001. "International Migration and Migration policy in Denmark," CLS Working Papers 01-5, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.

    More about this item

    Keywords

    EMPLOYMENT ; HEALTH ; INCOME;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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