Research Snapshot: Major depressive episodes reduce job earnings over a decade for working-aged Canadians
What you need to know
Researchers looked at the impact of having a major depressive episode on people’s earnings. They used a statistical method called propensity score matching, which can help to better estimate the difference in future earnings between having a major depressive episode and not having one. Men who had an episode lost about $5,000 in annual earnings in the year the episode occurred and women lost about $4,500. There was no evidence of people who had experienced a major depressive episode achieving a level of earnings similar to those who had not experienced an episode over the same 10-year period. Experiencing a major depressive episode was associated with a cumulative 10-year loss in earnings of roughly $115,000 for men and $71,000 for women.
What is this research about?
A major depressive episode can impact a person’s earnings by affecting their work productivity, how much time they spend at work and whether they apply for gainful employment. Having an accurate estimate of this link can inform studies on the cost of depression as well as labour policies. It also helps employers, workplaces and workforces understand the impact of depression on job earnings and the economic burden on individuals.
Researchers in Ontario, Canada looked at the link between a major depressive episode and job earnings over a decade among working-aged Canadian women and men.
What did the researchers do?
The researchers studied the link between a major depressive episode and job earnings. They used a design method called propensity score matching. This approach can help to better estimate the difference in future earnings between having a depressive episode and not having one in observational data sources.
The study gathered data from a group of adults diagnosed with major depressive episode who were matched with adults without this diagnosis. Researchers used a database that linked baseline population health data to annual tax records and measured earnings both retrospectively and prospectively.
The study population was Canadian adults between the ages of 18 and 54 at the start of the study, who were loosely participating in the Canadian labour force. The initial group was made up of 85,155 participants, 44,020 of them women and 41,135 men.
A total of 3,487 women who had a major depressive episode were matched to 3,487 women with a similar sociodemographic and health profile who had not experienced a depressive episode. A total of 1,810 men who had a major depressive episode were matched to 1,810 men who had a similar sociodemographic and health profile who had not experienced a major depressive episode.
After creating the matched groups, the researchers modeled the link between having a major depressive episode and job earnings up to a decade after the depressive episode.
What did the researchers find?
Average earnings before the study were similar for those with major depressive episode diagnosis and those without. Women earned an average of $15,000 to $20,000 less than men at each time point.
Women earned an average of $4,473 less in the year they had a major depressive episode and an additional $363 less per year over the next decade. Men earned $5,023 less after an episode and $730 less per year after that, increasing to about $1,810 less per year 10 years after their major depressive episode.
There was no evidence of people who had experienced a major depressive episode achieving a level of earnings similar to those who had not experienced an episode over the same 10-year period.
By predicting the average annual earnings at each time point over the decade, the researchers showed that having a major depressive episode resulted in a 10-year loss in earnings of roughly $115,000 for men and $71,000 for women.
Limitations of the research
The researchers note that their study had several limitations. For example, they excluded some measures from the propensity score (such as a prior depressive episode) that may have affected these estimates. Also, the researchers only had information on one depressive episode. Participants who experienced more than one episode may have had a larger loss of earnings than what was seen in this study.
How can you use this research?
The findings from this study may inform research on the cost of depression. They may also inform health and employment policies that address the critical period after a depressive episode. For example, receiving effective treatment may help people return to work more quickly and prevent earnings losses.
Future research could explore the differences between types of depression. It could also look at the characteristics of those who have successful employment trajectories after a major depressive episode. Research could also explore factors such as depression treatment or workplace social and psychological support that might reduce the loss of earnings.
Employers may consider these findings and the benefits of implementing programs that focus on employee well-being and the prevention of mental health problems.
About the researchers
Kathleen G. Dobson1,2, Simone N. Vigod3,4, Cameron Mustard1,2, Peter M. Smith1,2,5
- Epidemiology Division, Dalla Lana School of Public Health, University of Toronto, Toronto, ON, Canada
- Institute for Work & Health, Toronto, ON, Canada
- Department of Psychiatry, University of Toronto, Toronto, ON, Canada
- Women’s College Hospital and Research Institute, Toronto, ON, Canada
- Department of Epidemiology and Preventive Medicine, Monash University, Melbourne, Victoria, Australia