The Impact of Psychiatric Disorders on Labor Market Outcomes

40 Pages Posted: 25 May 2006 Last revised: 15 May 2022

See all articles by Susan L. Ettner

Susan L. Ettner

Harvard University - Harvard Medical School

Richard G. Frank

Harvard Medical School; National Bureau of Economic Research (NBER)

Ronald C. Kessler

Harvard Medical School

Multiple version iconThere are 2 versions of this paper

Date Written: April 1997

Abstract

Data on 2225 men and 2401 women from the National Comorbidity Survey were used to examine the impact of psychiatric disorders on employment and conditional work hours and income. Two-stage instrumental variables methods were used to correct for the potential endogeneity of psychiatric disorders. The instruments used (the psychiatric disorder history of the respondent and respondent's parents) passed tests of the overidentifying restrictions. Psychiatric disorders significantly reduced employment among both men and women. Evidence was also found of small reductions in the conditional work hours of men and a substantial drop in the conditional earnings of men and women, although these findings were somewhat more sensitive to the estimation methods and specification of the model.

Suggested Citation

Ettner, Susan L. and Frank, Richard G. and Kessler, Ronald C., The Impact of Psychiatric Disorders on Labor Market Outcomes (April 1997). NBER Working Paper No. w5989, Available at SSRN: https://ssrn.com/abstract=225768

Susan L. Ettner (Contact Author)

Harvard University - Harvard Medical School ( email )

Health Care Policy
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Richard G. Frank

Harvard Medical School ( email )

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National Bureau of Economic Research (NBER)

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Ronald C. Kessler

Harvard Medical School ( email )

Health Care Policy
Boston, MA 02115
United States

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