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Employment effects of healthcare policy: Evidence from the 2007 FDA black box warning on antidepressants

Aline Bütikofer, Christopher Cronin () and Meghan Skira

Journal of Health Economics, 2020, vol. 73, issue C

Abstract: Public policies aimed at improving health may have indirect effects on outcomes such as education and employment. We study the labor market effects of the US Food and Drug Administration's 2007 expanded black box warning on antidepressants. Our difference-in-differences estimates imply that the warning reduced employment by 6.1 percent among women aged 35–49 with a history of depression. We explore potential mechanisms and find that antidepressant and psychotherapy use among women aged 35–49 decreased after the warning. Our analysis suggests that the 2007 warning reduced US labor force participation by 0.23 percentage points, leading to $11.8 billion in lost wages.

Keywords: Mental health; Employment; Antidepressants; Black box warnings (search for similar items in EconPapers)
JEL-codes: D83 I18 J22 (search for similar items in EconPapers)
Date: 2020
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Working Paper: Employment Effects of Healthcare Policy: Evidence from the 2007 FDA Black Box Warning on Antidepressants (2019) Downloads
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DOI: 10.1016/j.jhealeco.2020.102348

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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