What can we learn about the effect of mental health on labor market outcomes under weak assumptions? Evidence from the NLSY79

B-Tier
Journal: Labour Economics
Year: 2022
Volume: 79
Issue: C

Authors (4)

Germinario, Giuseppe (not in RePEc) Amin, Vikesh (not in RePEc) Flores, Carlos A. (not in RePEc) Flores-Lagunes, Alfonso (W.E. Upjohn Institute for Empl...)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We employ a nonparametric partial identification approach to bound the causal effect of poor mental health on employment and earnings using the National Longitudinal Study of Youth 1979. Our approach allows us to provide bounds on the population average treatment effect based on relatively weak, credible assumptions. We find that being categorized as depressed decreases employment by 10% and earnings by 27% at most, but we cannot statistically rule out a zero effect. We also provide insights into the heterogeneity of the effects on labor market outcomes at different levels of adverse mental health experienced (no, little, mild, moderate, and severe depressive symptoms). We find that going from having no (little) to severe depressive symptoms reduces employment by 3–18% (3–16%) and earnings by 11–44% (12–36%). The estimated bounds statistically rule out null effects for earnings but not for employment.

Technical Details

RePEc Handle
repec:eee:labeco:v:79:y:2022:i:c:s0927537122001488
Journal Field
Labor
Author Count
4
Added to Database
2026-01-25