The Economic Burden of Burnout

Arash Nekoei, Jósef Sigurdsson and Dominik Wehr

No 11128, CESifo Working Paper Series from CESifo

Abstract: We study the economic consequences of stress-related occupational illnesses (burnout) using Swedish administrative data. Using a mover design, we find that high-burnout firms and stressful occupations universally raise burnout risk yet disproportionately impact low-stress-tolerance workers. Workers who burn out endure permanent earnings losses regardless of gender—while women are three times more susceptible. Repercussions of burnout extend to the worker’s family, reducing spousal income and children’s educational achievements. Through sick leaves, earnings scars, and spillovers, burnout reduced the national labor income by 2.3% in 2019. We demonstrate how estimated costs, combined with a prediction model incorporating workers’ self-reported stress, can improve the design of prevention programs.

Keywords: amenities; mental health; employment; misallocation; fiscal cost (search for similar items in EconPapers)
JEL-codes: E24 I18 J21 J28 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-hea and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11128

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