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Talk Therapy and Human Capital in Adolescence: Evidence from Nepal

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Listed:
  • Eric V. Edmonds
  • Priya Mukherjee
  • Nikhilesh Prakash
  • Nishith Prakash
  • Shwetlena Sabarwal

Abstract

We examine the impact of a randomized therapy intervention on Nepali adolescents at risk of school dropout. Our study is the largest of its kind (N = 1,707) and is novel in that participation does not require a preexisting diagnosis. Ninety percent of those offered therapy participated, with younger adolescents demonstrating higher compliance. Among those who complied, therapy significantly reduced psychological distress, improved emotional regulation, and enhanced life perspective, even in individuals without baseline mental health issues. However, these improvements in well-being did not lead to increased school attendance or better cognitive performance, suggesting that additional interventions may be necessary to enhance educational engagement in low-resource settings.

Suggested Citation

  • Eric V. Edmonds & Priya Mukherjee & Nikhilesh Prakash & Nishith Prakash & Shwetlena Sabarwal, 2025. "Talk Therapy and Human Capital in Adolescence: Evidence from Nepal," NBER Working Papers 33677, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:33677
    Note: CH DEV ED EH
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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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