The Economic Cost of Depression: A Mendelian Randomisation Study
- 👤 Speaker: Fergus McCormack, PhD Candidate, Department of Economics
- 📅 Date & Time: Tuesday 11 February 2025, 13:10 - 14:00
- 📍 Venue: Richard King room, Darwin College
Abstract
Are people depressed because they’re poor, or are they poor because they’re depressed? Observational studies often struggle to untangle this relationship. In our study, we exploit a natural experiment—the random assignment of genes at birth—to estimate how depression influences economic outcomes. We find that depression significantly reduces income, largely through its effects on educational and occupational attainment, as well as employment. Additionally, our analysis of longitudinal data reveals that short-term declines in mental health also lower income, though to a considerably lesser extent. These findings suggest that early-life interventions aimed at improving mental health could yield substantial economic benefits by influencing educational and occupational trajectories.
Series This talk is part of the Darwin College Humanities and Social Sciences Seminars series.
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Tuesday 11 February 2025, 13:10-14:00