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Prescriptions for mental health and the labor market penalties of cerebral palsy

Asuman, Derek LU orcid ; Ásgeirsdóttir, Tinna Laufey and Jarl, Johan LU orcid (2026) In Economics and Human Biology 61.
Abstract

We explore mental health as a potential mechanism to explain the labor market penalty of an early-onset physical disability using administrative data from Sweden. For methodological reasons, we focus on persons with Cerebral Palsy (CP) and use prescriptions for mental health conditions. We examine how much of the differences in labor market outcomes is explained by prescriptions for mental health conditions and whether the mental health gradient differs between persons with and without CP. Finally, we assess whether the social insurance system compensates for potential lost earnings due to mental health through access to social benefits. We find that prescriptions for mental health conditions explain only a small part of the labor... (More)

We explore mental health as a potential mechanism to explain the labor market penalty of an early-onset physical disability using administrative data from Sweden. For methodological reasons, we focus on persons with Cerebral Palsy (CP) and use prescriptions for mental health conditions. We examine how much of the differences in labor market outcomes is explained by prescriptions for mental health conditions and whether the mental health gradient differs between persons with and without CP. Finally, we assess whether the social insurance system compensates for potential lost earnings due to mental health through access to social benefits. We find that prescriptions for mental health conditions explain only a small part of the labor market penalties of CP. While mental health may impose additional employment penalties, labor market benefits exist for the treatment of mental health conditions among persons with CP. Furthermore, we find that the social insurance system partially compensates for the earnings penalties of CP through access to social benefits. Our results underscore the importance of understanding the interactions between mental health and labor market outcomes of persons with motor disabilities.

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; and
organization
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type
Contribution to journal
publication status
published
subject
keywords
Anxiety, Cerebral palsy, Depression, Disability, Earnings, Employment, Labor outcomes, Mental health, Sweden
in
Economics and Human Biology
volume
61
article number
101592
publisher
Elsevier
external identifiers
  • scopus:105033261160
  • pmid:41861571
ISSN
1570-677X
DOI
10.1016/j.ehb.2026.101592
language
English
LU publication?
yes
id
1342ac28-2bb1-4641-ab7a-02879cf5a8c7
date added to LUP
2026-04-17 14:15:53
date last changed
2026-05-29 18:53:01
@article{1342ac28-2bb1-4641-ab7a-02879cf5a8c7,
  abstract     = {{<p>We explore mental health as a potential mechanism to explain the labor market penalty of an early-onset physical disability using administrative data from Sweden. For methodological reasons, we focus on persons with Cerebral Palsy (CP) and use prescriptions for mental health conditions. We examine how much of the differences in labor market outcomes is explained by prescriptions for mental health conditions and whether the mental health gradient differs between persons with and without CP. Finally, we assess whether the social insurance system compensates for potential lost earnings due to mental health through access to social benefits. We find that prescriptions for mental health conditions explain only a small part of the labor market penalties of CP. While mental health may impose additional employment penalties, labor market benefits exist for the treatment of mental health conditions among persons with CP. Furthermore, we find that the social insurance system partially compensates for the earnings penalties of CP through access to social benefits. Our results underscore the importance of understanding the interactions between mental health and labor market outcomes of persons with motor disabilities.</p>}},
  author       = {{Asuman, Derek and Ásgeirsdóttir, Tinna Laufey and Jarl, Johan}},
  issn         = {{1570-677X}},
  keywords     = {{Anxiety; Cerebral palsy; Depression; Disability; Earnings; Employment; Labor outcomes; Mental health; Sweden}},
  language     = {{eng}},
  publisher    = {{Elsevier}},
  series       = {{Economics and Human Biology}},
  title        = {{Prescriptions for mental health and the labor market penalties of cerebral palsy}},
  url          = {{http://dx.doi.org/10.1016/j.ehb.2026.101592}},
  doi          = {{10.1016/j.ehb.2026.101592}},
  volume       = {{61}},
  year         = {{2026}},
}