Economics of mental wellbeing: a prospective study estimating associated productivity costs due to sickness absence from the workplace in Denmark

Ziggi Ivan Santini, Lau Caspar Thygesen, Ai Koyanagi, Sarah Stewart-Brown, Charlotte Meilstrup, Line Nielsen, Kim Rose Olsen, Michael Birkjær, David McDaid, Vibeke Koushede and Ola Ekholm

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Background Few studies have assessed associations between mental wellbeing (MWB) and productivity loss using nationally-representative longitudinal data. The objective of the study was to determine how different levels of MWB are associated with future productivity loss due to sickness absence. Methods Data stem from a Danish nationally representative panel study of 1,959 employed adults (aged 16-64 years old) conducted in 2019 and 2020, which was linked to Danish register data. The validated Short Warwick-Edinburgh Mental Wellbeing Scale (SWEMWBS) was used to assess MWB in 2019. The outcome was days absent from work due to sickness in 2020. Linear regression models were used to predict sickness absence in 2020 while adjusting for sickness absence in 2019, sociodemographics and health status, including psychiatric morbidity. Productivity costs were estimated using the human capital approach (HCA) and friction cost approach (FCA). Results Each point increase in MWB was significantly associated with fewer sick days and, by extension, lower productivity loss (reported in the order HCA/FCA). As compared to low MWB, moderate MWB was associated with $-1,614/$-1,271 per person, while high MWB was associated with $-2,351/$-1,779 per person. Extrapolated to the Danish population (2.7M employed adults aged 16-64), moderate MWB (67.3% of the population) was associated with lower productivity costs amounting to $-2.9bn/$-2.3bn, while high MWB (20.4% of the population) was associated with lower costs amounting to $-1.3bn/$-0.9bn. Conclusions Higher levels of MWB are associated with considerably less productivity loss. Substantial reductions in productivity loss could potentially be achieved by promoting higher levels of MWB in the population workforce.

Keywords: health economics; productivity; absenteeism; mental health; mental wellbeing (search for similar items in EconPapers)
JEL-codes: J1 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2022-12-01
New Economics Papers: this item is included in nep-hea
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Published in Mental Health & Prevention, 1, December, 2022, 28. ISSN: 2212-6570

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