The financial situation before and after first-time psychiatric in-patient diagnosis of schizophrenia spectrum,bipolar, and major depressive disorder |
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| Affiliation: | 1. Department of Health Policy London School of Economics and Political Science (LSE), CESIfo & IZA;2. University of Murcia, Spain;1. Cornell University and NBER, United States;2. Yonsei University, South Korea;3. Bryn Mawr College, United States;4. University of Michigan and NBER, United States;1. European Commission, Joint Research Centre (JRC), Ispra, Italy;2. Department of Economics, University of Bergamo, Italy;1. University of Torino, Department of Economics and Statistics “Cognetti de Martiis”, Lungo Dora Siena, 100 I-10153 Torino, TO, Italy;2. University of Gastronomic Sciences, piazza Vittorio Emanuele II, 9 I-12042 Bra, CN, Italy;3. OEET-Turin Centre on Emerging Economies – Collegio Carlo Alberto, piazza Arbarello, 8 I-10122 Torino, TO, Italy;4. Polytechnic University of Milan, Department of Management, Economics and Industrial Engineering;1. Departament of Economics and Posgraduate Program in Economics, Federal University of Alagoas (Universidade Federal de Alagoas), Maceió, AL, Brazil;2. Departament of Economics, Federal University of Rio Grande Foundation (Fundação Universidade Federal do Rio Grande - FURG), Rio Grande, Brazil;3. Posgraduate Program in Economics, Federal University of Pelotas (Universidade Federal de Pelotas - UFPel), Rio Grande Do Sul, Brazil;4. Departament of Economics, Federal University of Rio Grande Foundation (Fundação Universidade Federal do Rio Grande - FURG), Brazil;1. Department of Agricultural Economics and Rural Development, University of Göttingen, ID Insight India Private Limited, New Delhi, India;2. University of Göttingen, USA;3. Division of Nutritional Sciences, Charles H. Dyson School of Applied Economics and Development, and Department of Global Development, Cornell University, USA |
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| Abstract: | Schizophrenia spectrum, bipolar, and major depressive disorders are severe mental illnesses (SMIs) that not only entail great suffering for those affected but also major societal costs. In this study, I use administrative register data to provide a detailed picture of the financial situation of people with SMI in Sweden during a period of 10 years around first-time psychiatric in-patient diagnosis of schizophrenia spectrum, bipolar, and major depressive disorders. Receiving a diagnosis was associated with a considerable drop in earnings, which was largely compensated for by social transfers: mainly sickness and disability insurance. However, there were also large and increasing pre-diagnosis earnings gaps, relative to matched comparison groups, especially among those with schizophrenia spectrum disorders. These gaps were to a lesser extent compensated for by social transfers. Consequently, there were permanent and increasing – due to lost earnings growth – income differentials. Hence, findings in previous studies are confirmed: even in an advanced welfare state, people with SMI – especially those with schizophrenia – have an extremely weak position on the labour market and an equally difficult financial situation. |
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| Keywords: | Schizophrenia spectrum disorder Bipolar disorder Major depressive disorder Social insurances Labour market situation |
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