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Useful beautiful minds—An analysis of the relationship between schizophrenia and employment

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  • Greve, Jane
  • Nielsen, Louise Herrup

Abstract

This paper examines the relationship between schizophrenia and employment. We use longitudinal register data and show a considerable drop in the employment rate for people with schizophrenia six years before the first treatment at a psychiatric facility. After the first treatment, the employment rate stabilizes at 18%.

Suggested Citation

  • Greve, Jane & Nielsen, Louise Herrup, 2013. "Useful beautiful minds—An analysis of the relationship between schizophrenia and employment," Journal of Health Economics, Elsevier, vol. 32(6), pages 1066-1076.
    • Handle: RePEc:eee:jhecon:v:32:y:2013:i:6:p:1066-1076
    DOI: 10.1016/j.jhealeco.2013.08.007
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    References listed on IDEAS

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    2. Chatterji, Pinka & Alegria, Margarita & Takeuchi, David, 2011. "Psychiatric disorders and labor market outcomes: Evidence from the National Comorbidity Survey-Replication," Journal of Health Economics, Elsevier, vol. 30(5), pages 858-868.
    3. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of Psychiatric Disorders on Labor Market Outcomes," NBER Working Papers 5989, National Bureau of Economic Research, Inc.
    4. Bartel, Ann & Taubman, Paul, 1979. "Health and Labor Market Success: The Role of Various Diseases," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 1-8, February.
    5. James J. Heckman & Dimitriy V. Masterov, 2007. "The Productivity Argument for Investing in Young Children," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 446-493.
    6. Marcotte, Dave E. & Wilcox-Gök, Virginia, 2001. "Estimating the employment and earnings costs of mental illness: recent developments in the United States," Social Science & Medicine, Elsevier, vol. 53(1), pages 21-27, July.
    7. McLaughlin, Katie A. & Breslau, Joshua & Green, Jennifer Greif & Lakoma, Matthew D. & Sampson, Nancy A. & Zaslavsky, Alan M. & Kessler, Ronald C., 2011. "Childhood socio-economic status and the onset, persistence, and severity of DSM-IV mental disorders in a US national sample," Social Science & Medicine, Elsevier, vol. 73(7), pages 1088-1096.
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    Citations

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    Cited by:

    1. Henri Salokangas, 2021. "Mental disorders and lifetime earnings," Discussion Papers 145, Aboa Centre for Economics.
    2. Thomas Barnay & Éric Defebvre, 2019. "Gender Differences in the Influence of Mental Health on Job Retention," LABOUR, CEIS, vol. 33(4), pages 507-532, December.
    3. Rasmus Landersø & Peter Fallesen, 2021. "Psychiatric hospital admission and later crime, mental health, and labor market outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 165-179, January.
    4. Iben Gammelgaard & Thomas N Christensen & Lene F Eplov & Sofie B Jensen & Elsebeth Stenager & Kirsten S Petersen, 2017. "‘I have potential’: Experiences of recovery in the individual placement and support intervention," International Journal of Social Psychiatry, , vol. 63(5), pages 400-406, August.
    5. Bryan, M.; & Roberts, J.; & Sechel, C.;, 2019. "The Effect of Mental Health on Employment:Accounting for Selection Bias," Health, Econometrics and Data Group (HEDG) Working Papers 19/14, HEDG, c/o Department of Economics, University of York.
    6. Diby, Akissi S. & Lengagne, Pascale & Regaert, Camille, 2021. "Employment Vulnerability of People With Severe Mental Illness," Health Policy, Elsevier, vol. 125(2), pages 269-275.
    7. Emely Ek Blæhr & Rikke Søgaard, 2021. "Instrumental variable‐based assessment of the effect of psychotherapy on suicide attempts, health, and economic outcomes in schizophrenia," Health Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 903-914, April.
    8. Henri Salokangas, 2021. "Exploring the labor market consequences of psychiatric disorders: An event study approach," Discussion Papers 148, Aboa Centre for Economics.
    9. Wolf, Tobias, 2020. "Welfare while working: How does the life satisfaction approach help to explain job search behavior?," Discussion Papers 2020/14, Free University Berlin, School of Business & Economics.
    10. Eliason, Marcus, 2023. "The financial situation before and after first-time psychiatric in-patient diagnosis of schizophrenia spectrum, bipolar, and major depressive disorder," Economics & Human Biology, Elsevier, vol. 49(C).
    11. Knapp, Martin & Andrew, Alison & McDaid, David & Iemmi, Valentina & McCrone, Paul & Park, A-La & Parsonage, Michael & Boardman, Jed & Shepherd, Geoff, 2014. "Investing in recovery: making the business case for effective interventions for people with schizophrenia and psychosis," LSE Research Online Documents on Economics 56773, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Severe mental disorder; Employment; Danish administrative data; Sibling fixed effects;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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