Seminal Research
Mental Health, Schooling, and Labor Market Outcomes
Dr. Farah Farahati @Farahfarahati

Dr. Farah Farahati
Title: Lecturer, Health Services Administration, University of Maryland
Research Topic: Mental Health, Schooling, and Labor Market Outcomes
Institution: Northern Illinois University
Committee Chair: Virginia Wilcox-Gök, PhD
Abstract: This study explores the life-cycle relationships between poor mental health and human capital formation for men and women. It tests the hypothesis that parental mental disorder and an adolescent mental disorder during schooling years increase the probability of that individual’s dropping out of high school. This study also tests the related hypothesis that current and lifetime mental disorders decrease the probability of his/her labor force participation as well as his/her annual income.
The data for this study are drawn from the National Comorbidity Survey (NCS). I use several types of multivariate analysis to test my hypotheses: Logistic, Ordinary Least Squares, and Tobit regression techniques, as well as Instrumental Variable versions of these techniques (constructed in a two-stage procedure using parental and youth history of mental illness).
The findings from the first part of this study indicate that the probability of dropping out of high school is significantly higher for both girls and boys with parents who suffer from depression, generalized anxiety, and alcohol and drug dependence/abuse compared to those with parents without these disorders. The results from the second part of this study indicate that an early onset (during schooling years) of anxiety, alcohol dependence and conduct disorders significantly increase the probability of dropping out of high school for boys and girls.
The findings pertaining to the impact of current and lifetime mental disorders on labor market outcomes suggest that lifetime mood and anxiety disorders have a negative impact on the probability of labor force participation as well as level of income for women. Lifetime anxiety also has a negative impact on the probability of labor force participation for men. A current anxiety disorder decreases labor force participation rates and income for women. Consistent with the previous studies, there is a mixed impact of alcohol and drug disorders on labor market outcomes for men and women.
Title: Lecturer, Health Services Administration, University of Maryland
Research Topic: Mental Health, Schooling, and Labor Market Outcomes
Institution: Northern Illinois University
Committee Chair: Virginia Wilcox-Gök, PhD
Abstract: This study explores the life-cycle relationships between poor mental health and human capital formation for men and women. It tests the hypothesis that parental mental disorder and an adolescent mental disorder during schooling years increase the probability of that individual’s dropping out of high school. This study also tests the related hypothesis that current and lifetime mental disorders decrease the probability of his/her labor force participation as well as his/her annual income.
The data for this study are drawn from the National Comorbidity Survey (NCS). I use several types of multivariate analysis to test my hypotheses: Logistic, Ordinary Least Squares, and Tobit regression techniques, as well as Instrumental Variable versions of these techniques (constructed in a two-stage procedure using parental and youth history of mental illness).
The findings from the first part of this study indicate that the probability of dropping out of high school is significantly higher for both girls and boys with parents who suffer from depression, generalized anxiety, and alcohol and drug dependence/abuse compared to those with parents without these disorders. The results from the second part of this study indicate that an early onset (during schooling years) of anxiety, alcohol dependence and conduct disorders significantly increase the probability of dropping out of high school for boys and girls.
The findings pertaining to the impact of current and lifetime mental disorders on labor market outcomes suggest that lifetime mood and anxiety disorders have a negative impact on the probability of labor force participation as well as level of income for women. Lifetime anxiety also has a negative impact on the probability of labor force participation for men. A current anxiety disorder decreases labor force participation rates and income for women. Consistent with the previous studies, there is a mixed impact of alcohol and drug disorders on labor market outcomes for men and women.

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