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  5. Economics of Mental Health and Sleep
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Economics of Mental Health and Sleep

Paper Session

Saturday, Jan. 7, 2023 2:30 PM - 4:30 PM (CST)

New Orleans Marriott, Galerie 5
Hosted By: Chinese Economic Association in North America
  • Chair: Elaine M. Liu, University of Houston and NBER

Economic Crises and Mental Health: Effects of the Great Recession on Older Americans

David Cutler
,
Harvard University and NBER
Noemie Sportiche
,
Harvard University

Abstract

We examine the effect of the Great Recession of 2007-2009 on the mental health of older adults, using longitudinal Health and Retirement Study data linked to area-level data on house prices. We use a variety of measures to capture mental health and rely on the very large cross-sectional variation in falling house prices to identify the impact of the Great Recession on those outcomes. We also account for people who moved in response to falling prices by fixing each person’s location immediately prior to the house price collapse. Our central finding is that the Great Recession had heterogeneous effects on health. While mental health was not affected for the average older adult, mental health declined among homeowners with few financial assets, who were therefore more vulnerable to falling house prices. Importantly, health impacts in this group differed by race and ethnicity: depression and functional limitations worsened among Black and other non-white homeowners and medication use increased among white homeowners. There were no measurable impacts for Hispanic homeowners. These results highlight the importance of examining heterogeneity across multiple dimensions when examining the health impacts of economic conditions.

Fetal Origins of Mental Health: Evidence from Natural Disasters in Taiwan

Jintan Liu
,
National Taiwan University and NBER
Elaine M. Liu
,
University of Houston and NBER
Tzu-Yin Hazel Tseng
,
Amazon

Abstract

This paper examines the impact of poor intrauterine environment on psychological well-being later in life caused by severe typhoons that took place in Taiwan. Exploiting time and geographical variation, we compare the mental health of individuals who were exposed to severe typhoons while in utero in landfall counties to those who had no fetal exposure to severe typhoons. We find that the likelihood of mental disorders in adulthood resulting from fetal exposure to severe typhoons increased by 12%. The incidence of mood disorder (e.g. depression) and the use of antidepressant increased by more than 40%. The effects are more prominent for women.

Sleep: Habit Formation and Educational Impact

Osea Giuntella
,
University of Pittsburgh and NBER
Silvia Saccardo
,
Carnegie Mellon University
Sally Sadoff
,
University of California-San Diego

Abstract

Sleep deprivation among college students is increasingly becoming a reason for concern. According to recent statistics, 60% of students say they are “dragging, tired, or sleepy” at least three days a week, and more than 80% say loss of sleep affects their academic performance. We collected data on approximately 1100 undergraduates to evaluate the effects of different interventions to improve sleep behavior and examine the effects of these interventions on academic outcomes. Our study examines the role of financial incentives, timing of rewards, reminders, and feedback. Financial incentives significantly improved sleep during the rewards period, while feedback (without monetary incentives) was less effective. Our evidence suggests the effect persists after the removal of the incentive. Immediate cash incentives had the largest effect during and after treatment increasing the likelihood of sleeping between 7 and 9 hours by 22% during treatment and 10% after the removal of the incentive. Our estimates suggest that causally increasing sleep by an average of 15 minutes per day improves GPA by 0.16 standard deviations.

Impacts of Cognitive Behavioral Therapy and Cash Transfers on Depression among the Elderly Living Alone: An RCT in Tamil Nadu, India

Madeline McKelway
,
Dartmouth College
Abhijit Banerjee
,
Massachusetts Institute of Technology and NBER
Frank Schilbach
,
Massachusetts Institute of Technology and NBER
Garima Sharma
,
Massachusetts Institute of Technology
Esther Duflo
,
Massachusetts Institute of Technology and NBER

Abstract

This paper studies the impact of phone-delivered cognitive behavioral therapy and/or a cash transfer on depression and functional impairment in a sample of low-income elderly living alone in India. Each of the three treatment arms --- therapy only, therapy plus cash, and cash only --- led to significant reductions in depression and functional impairment one month after the treatment. These treatment effects do not persist: we find no impacts on depression or functional impairment from any of the treatments three months after the intervention. Participants appear to value the benefits of therapy: 30% of participants prefer another person to receive therapy rather than a cash transfer of an equivalent amount as our cash treatment. This fraction of participants is significantly higher in the group assigned both therapy and cash, suggesting that first-hand experience with both interventions increases participants’ appreciation of therapy’s benefits.

Discussant(s)
Benjamin Hansen
,
University of Oregon and NBER
Bilge Erten
,
Northeastern University
Jason Baron
,
Duke University and NBER
Daniel Bennett
,
University of Southern California
JEL Classifications
  • I0 - General
  • I1 - Health