Therapy, Mental Health, and Human Capital Accumulation among Adolescents in Uganda

Using a cluster-randomized trial, this paper evaluates the impact of group-based interpersonal therapy on mental health and human capital accumulation among adolescent girls in Uganda who were at risk of moderate or severe depression at baseline. The study was designed to test whether lay provider–led group-based interpersonal therapy for adolescents could be effectively scaled up using modest resources in a low-income country. It also tested whether a lump-sum cash transfer offered at the end of therapy provided any additional benefit. The findings show that group-based interpersonal therapy increased the share of adolescents with minimal depression by 20-30 percent 12 months after therapy, but these effects dissipated by the 24-month follow-up. Small short-term effects on human capital accumulation were also not sustained at 24 months. Surprisingly, the marginal effect of providing cash transfers to group-based interpersonal therapy beneficiaries on mental health was large and negative, persisting two years after baseline. The paper provides suggestive evidence that the adolescents were frustrated by their inability to use the cash toward their own goals because of the need to divert funds toward the essential needs of their families during the COVID-19 pandemic.