Psychiatric disorders and labor market outcomes: evidence from the National Latino and Asian American Study

Pinka Chatterji, Margarita Alegría, Mingshan Lu and David Takeuchi
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Margarita Alegría: Center for Multicultural Mental Health Research, Cambridge Health Alliance|Harvard Medical School, USA, Postal: Center for Multicultural Mental Health Research, Cambridge Health Alliance|Harvard Medical School, USA
Mingshan Lu: Department of Economics, University of Calgary, Canada, Postal: Department of Economics, University of Calgary, Canada
David Takeuchi: Department of Sociology & School of Social Work, University of Washington, USA, Postal: Department of Sociology & School of Social Work, University of Washington, USA

Health Economics, 2007, vol. 16, issue 10, pages 1069-1090

Abstract: This paper investigates to what extent psychiatric disorders and mental distress affect labor market outcomes in two rapidly growing populations that have not been studied to date-ethnic minorities of Latino and Asian descent, most of whom are immigrants. Using data from the National Latino and Asian American Study (NLAAS), we examine the labor market effects of meeting diagnostic criteria for any psychiatric disorder in the past 12 months as well as the effects of psychiatric distress in the past year. The labor market outcomes analyzed are current employment status, the number of weeks worked in the past year among those who are employed, and having at least one work absence in the past month among those who are employed. Among Latinos, psychiatric disorders and mental distress are associated with detrimental effects on employment and absenteeism, similar to effects found in previous analyses of mostly white, American born populations. Among Asians, we find more mixed evidence that psychiatric disorders and mental distress detract from labor market outcomes. Our findings suggest that reducing disparities and expanding access to effective treatment may have significant labor market benefits-not just for majority populations, as has been demonstrated, but also for Asians and Latinos. Copyright © 2007 John Wiley & Sons, Ltd.

Date: 2007
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Working Paper: Psychiatric Disorders and Labor Market Outcomes: Evidence from the National Latino and Asian American Study (2005)
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