Talk Therapy and Human Capital in Adolescence: Evidence from a Low-Resource Setting

Eric V. Edmonds (), Priya Mukherjee (), Nikhilesh Prakash (), Nishith Prakash () and Shwetlena Sabarwal ()
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Eric V. Edmonds: Dartmouth College
Priya Mukherjee: University of Wisconsin-Madison
Nikhilesh Prakash: Stockholm School of Economics
Nishith Prakash: Northeastern University
Shwetlena Sabarwal: World Bank

No 17884, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We evaluate the impact of a therapy intervention on Nepali adolescents at risk of dropping out of school. Our randomized controlled trial is the largest of its kind (N = 1,707) and is novel in that participation does not require a preexisting diagnosis. Participation was high: 89 percent of adolescents offered therapy attended, with younger participants showing higher compliance. Therapy significantly reduced psychological distress, improved emotional regulation, and enhanced perspectives on life. These psychological benefits did not translate into better school attendance or cognitive outcomes. Our results indicate that mental health interventions alone may not be sufficient to improve educational performance in low-resource environments.

Keywords: education; teen mental health; therapy; Nepal (search for similar items in EconPapers)
JEL-codes: D12 I12 I15 I31 I32 O12 O18 (search for similar items in EconPapers)
Date: 2025-05
New Economics Papers: this item is included in nep-exp, nep-hea and nep-neu
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