The Labor Market Effects of Mental Illness: The Case of Affective Disorders

THE ECONOMICS OF DISABILITY, David Salkever and Alan Sorkin, eds., JAI Press

Posted: 17 Jul 2000

See all articles by Dave E. Marcotte

Dave E. Marcotte

University of Maryland Baltimore County; IZA Institute of Labor Economics

Virginia Wilcox-Gok

Northern Illinois University - Department of Economics

D. Patrick Redmon

Austin Peay State University - Department of Economics

Abstract

Objective: In this research we use data from the National Comorbidity Survey to examine the effects of affective mental disorders on the income and employment of women and men. We consider separately the effects of three major categories of affective illness: depression, bi-polar illnesses, and dysthymia.

Methods: We use a two-stage instrumental variables procedure to estimate the labor market effects of affective disorders in the presence of unmeasured heterogeneity between those with and without illness. In the first stage, we draw on respondents' family histories with illness to construct instrumental variables, which are theoretically and empirically relevant. These instruments are used in second stage regression and logistic analyses of annual income and employment.

Results: We find that some affective disorders result in earnings losses for both women and men. For women, depression is associated with substantial earnings losses for working women, on the order of more than $6,000 per year. But these losses are mitigated over time. Moreover, we find that depression has substantial negative employment effects for women. For men, we find evidence of income losses associated with dysthymia, but we find no evidence of significant employment effects.

JEL Classification: E24, I12, J10, J11

Suggested Citation

Marcotte, Dave E. and Wilcox-Gok, Virginia and Redmon, D. Patrick, The Labor Market Effects of Mental Illness: The Case of Affective Disorders. THE ECONOMICS OF DISABILITY, David Salkever and Alan Sorkin, eds., JAI Press, Available at SSRN: https://ssrn.com/abstract=228879

Dave E. Marcotte (Contact Author)

University of Maryland Baltimore County ( email )

1000 Hilltop Circle
Policy Sciences Graduate Program 621 Administration Building
Baltimore, MD 21250
United States
410-455-1455 (Phone)
410-455-1172 (Fax)

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Virginia Wilcox-Gok

Northern Illinois University - Department of Economics ( email )

DeKalb, IL 60115
United States
815-752-6957 (Phone)
815-752-1019 (Fax)

D. Patrick Redmon

Austin Peay State University - Department of Economics

601 College Street
Clarksville, TN 37044
United States
931-648-7755 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
928
PlumX Metrics