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The Impact of Recent Mental Health Changes on Employment: New Evidence from Longitudinal Data

Posted: 16 Jun 2017  

Sophie Mitra

Fordham University

Kristine Jones

Nathan Kline Institute

Date Written: January 1, 2017

Abstract

This study uses longitudinal data and four different measures of mental health to tease out the impact of psychiatric disorder onsets and recoveries on employment outcomes. Results suggest that developing a mental health problem leads to a significant increase in the probability of transitioning to non-employment, while a recovery increases the probability of return to work among the not employed with a mental health problem. No consistent effect was found on hours worked and earnings. Research and policy attention is needed with respect to early interventions such as job retention programmes to help workers with mental health problems remain employed as well as interventions that may lead to recovery and return to work. More research is needed especially with data and models that can differentiate between the effects of mental health onsets and recoveries on employment exit and return to work transitions.

Keywords: Employment, labour market outcomes, mental illness, psychiatric disorders, substance abuse

JEL Classification: I10, J20

Suggested Citation

Mitra, Sophie and Jones, Kristine, The Impact of Recent Mental Health Changes on Employment: New Evidence from Longitudinal Data (January 1, 2017). Applied Economics, Vol. 49, No. 1, 2017. Available at SSRN: https://ssrn.com/abstract=2986904

Sophie Mitra (Contact Author)

Fordham University ( email )

441 East Fordham road
Bronx, NY 10458
United States

HOME PAGE: http://www.fordham.edu/economics/mitra

Kristine Jones

Nathan Kline Institute ( email )

140 Old Orangeburg Road
Orangeburg, NY 10962
United States

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