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Talk Therapy and Human Capital in Adolescence: Evidence from a Low-Resource Setting

Author

Listed:
  • Edmonds, Eric V.

    (Dartmouth College)

  • Mukherjee, Priya

    (University of Wisconsin-Madison)

  • Prakash, Nikhilesh

    (Stockholm School of Economics)

  • Prakash, Nishith

    (Northeastern University)

  • Sabarwal, Shwetlena

    (World Bank)

Abstract

We evaluate the impact of a therapy intervention on Nepali adolescents at risk of dropping out of school. Our randomized controlled trial is the largest of its kind (N = 1,707) and is novel in that participation does not require a preexisting diagnosis. Participation was high: 89 percent of adolescents offered therapy attended, with younger participants showing higher compliance. Therapy significantly reduced psychological distress, improved emotional regulation, and enhanced perspectives on life. These psychological benefits did not translate into better school attendance or cognitive outcomes. Our results indicate that mental health interventions alone may not be sufficient to improve educational performance in low-resource environments.

Suggested Citation

  • Edmonds, Eric V. & Mukherjee, Priya & Prakash, Nikhilesh & Prakash, Nishith & Sabarwal, Shwetlena, 2025. "Talk Therapy and Human Capital in Adolescence: Evidence from a Low-Resource Setting," IZA Discussion Papers 17884, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17884
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    More about this item

    Keywords

    education; teen mental health; therapy; Nepal;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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