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Adolescent Depression and Adult Labor Market Outcomes

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  • Jason Fletcher

Abstract

This article uses recently released data from a national longitudinal sample to present new evidence of the longer term effects of adolescent depression on labor market outcomes. Results suggest reductions in labor force attachment of approximately 5% and earnings reductions of approximately 15% for individuals with depressive symptoms as an adolescent. These effects are only partially reduced when controlling for channels operating through educational attainment, adult depressive symptoms, or co‐occurring illnesses. Further, the unique structure of the data allows for high‐school fixed effects as well as suggestive evidence using sibling comparisons, which allows controls for potentially important unobserved heterogeneity. Overall, the results suggest that the links between adolescent depression and labor market outcomes are quite robust and important in magnitude, suggesting the need for further investments in treatment options and opportunities during adolescence, which will likely result in long term returns.

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  • Jason Fletcher, 2013. "Adolescent Depression and Adult Labor Market Outcomes," Southern Economic Journal, John Wiley & Sons, vol. 80(1), pages 26-49, July.
    • Handle: RePEc:wly:soecon:v:80:y:2013:i:1:p:26-49
    DOI: 10.4284/0038-4038-2011.193
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    2. Germinario, Giuseppe & Amin, Vikesh & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2022. "What can we learn about the effect of mental health on labor market outcomes under weak assumptions? Evidence from the NLSY79," Labour Economics, Elsevier, vol. 79(C).
    3. Bubonya, Melisa & Cobb-Clark, Deborah A. & Wooden, Mark, 2014. "A Family Affair: Job Loss and the Mental Health of Spouses and Adolescents," IZA Discussion Papers 8588, Institute of Labor Economics (IZA).
    4. Menta, Giorgia & Lepinteur, Anthony & Clark, Andrew E. & Ghislandi, Simone & D'Ambrosio, Conchita, 2023. "Maternal genetic risk for depression and child human capital," Journal of Health Economics, Elsevier, vol. 87(C).
    5. Clark, Andrew Eric & D'Ambrosio, Conchita & Ghislandi, Simone & Lepinteur, Anthony & Menta, Giorgia, 2021. "Maternal depression and child human capital: a genetic instrumental-variable approach," LSE Research Online Documents on Economics 114414, London School of Economics and Political Science, LSE Library.
    6. Giulietti, Corrado & Vlassopoulos, Michael & Zenou, Yves, 2022. "Peers, gender, and long-term depression," European Economic Review, Elsevier, vol. 144(C).
    7. Baranov, Victoria & Bennett, Daniel & Kohler, Hans-Peter, 2015. "The indirect impact of antiretroviral therapy: Mortality risk, mental health, and HIV-negative labor supply," Journal of Health Economics, Elsevier, vol. 44(C), pages 195-211.
    8. Katrina Witt & Allison Milner & Tracy Evans-Whipp & John W. Toumbourou & George Patton & Anthony D. LaMontagne, 2021. "Educational and Employment Outcomes among Young Australians with a History of Depressive Symptoms: A Prospective Cohort Study," IJERPH, MDPI, vol. 18(7), pages 1-13, March.
    9. Buyi Wang & Richard Frank & Sherry Glied, 2023. "Lasting scars: The impact of depression in early adulthood on subsequent labor market outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 32(12), pages 2694-2708, December.
    10. Seul-Ki Kim & Young-Chul Kim, 2021. "Coed vs Single-Sex Schooling: An Empirical Study on Mental Health Outcomes," Working Papers 2103, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    11. Michael Lebenbaum & Claire de Oliveira & France Gagnon & Audrey Laporte, 2024. "Child health and its effect on adult social capital accumulation," Health Economics, John Wiley & Sons, Ltd., vol. 33(5), pages 844-869, May.
    12. Indrajit Bairagya & Tulika Bhattacharya & Pragati Tiwari, 2021. "Does Vocational Training Promote Female Labour Force Participation? An Analysis for India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 15(1), pages 149-173, February.
    13. Jane Cooley Fruehwirth & Alex Xingbang Weng & Krista M. Perreira, 2024. "The effect of social media use on mental health of college students during the pandemic," Health Economics, John Wiley & Sons, Ltd., vol. 33(10), pages 2229-2252, October.
    14. Lehmann, Jee-Yeon K. & Nuevo-Chiquero, Ana & Vidal-Fernandez, Marian, 2012. "Explaining the Birth Order Effect: The Role of Prenatal and Early Childhood Investments," IZA Discussion Papers 6755, Institute of Labor Economics (IZA).
    15. Si Wang & Qingqing Yang, 2022. "Does weight impact adolescent mental health? Evidence from China," Health Economics, John Wiley & Sons, Ltd., vol. 31(10), pages 2269-2286, October.
    16. Kang, Songman & Son, Hyelim & Song, B.K., 2023. "The effect of housing price inequality on mental health," Labour Economics, Elsevier, vol. 85(C).

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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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