by New research highlights the cost-effectiveness of preventive policies in reducing mental health problems and improving labor force participation, income and health outcomes.
Study: Psychological distress during adolescence and later economic and health outcomes in the US population: A retrospective and modeling study. Image credits: Monkey Business Images/Shutterstock.com
The U.S. government regularly evaluates the results of national policy investments, including their broader social and economic impacts.
A recent study published in PLOS medicine examined the link between psychological distress during adolescence and its effects on health and economic outcomes in adulthood. The study also used these associations to estimate how implementing supportive policies could affect the economy.
Background
Government budget analyzes often ignore the long-term health and economic consequences of mental health problems in adolescents. As a result, policies to support adolescent mental health care are typically viewed as costs rather than investments with future benefits.
Substantial evidence suggests that investing in adolescent mental health care yields significant long-term economic benefits. These include higher labor force participation and a reduced likelihood of dependence on welfare programs.
Such benefits can come from helping young people cope with environmental challenges and develop strategies to cope with intellectual, social, physical or emotional problems.
However, existing economic models used by government analysts rarely capture these effects. This is mainly due to the incompatibility between the parameters used in research studies and the inputs required for these models.
The recent study sought to bridge this gap by developing more compatible parameters and assessing how including these adjustments could change budget forecasts.
About the study
The study analyzed a nationally representative cohort of youth between the ages of 15 and 17 in the year 2000, using data from the National Longitudinal Study of Youth 1997. The sample included 3,343 individuals, of whom 47% were black or Hispanic, and 43% had developmental or developmental disabilities. health problems, and 4.4% experienced clinical psychological problems.
Mental health assessments were conducted using the Mental Health Inventory-5 (MHI-5), while health and economic outcomes were measured approximately ten years later. Researchers took into account several confounding factors, such as demographic, familial, environmental and academic influences.
In addition to race and ethnicity, variables include neighborhood safety, smoking habits, delinquent behavior, higher education aspirations, children’s health (including congenital and intellectual disabilities), caregiver education and financial stability, family and parental involvement, home environment, school quality, and academic skills.
Participants were classified as distressed or nondistressed based on their MHI-5 scores, with scores of 3 or less indicating distress and scores of 4 or more indicating nondistress. The group was further categorized based on symptom severity according to the MHI-5 scale.
The outcomes assessed approximately ten years later included health status, as well as economic factors such as employment, income, total assets at age 30, and education level.
Economic results
Approximately ten years later, 84% of the cohort had participated in the labor force at some point in the previous year. Their average annual wage was approximately $28,000, with a total average of 1,483 hours worked. At age 30, their total assets averaged $29,419.
Within this group, 3% experienced clinical mental health problems after ten years, and 24% had completed a college degree by then.
For those who had reported mental health problems in the past month as an adolescent, their employment rate in the past year was about six percentage points lower than that of those without such problems.
In addition, their total hours worked decreased by an estimated 201 hours, equivalent to 5.7 fewer workweeks, and their annual wages were $5,658 lower. At age 30, their total wealth was $10,833 less than that of their unaffected peers.
Educational outcomes were also affected. The percentage of individuals who had completed at least some college courses was nine percentage points lower among those with adolescent mental health problems, with more pronounced differences observed at higher levels of education.
In addition, self-reported health was worse among this group, which was associated with an 11 percentage point increase in Medicaid and Medicare coverage.
Effect of expanded access policies
The researchers modeled the potential impact of a hypothetical policy aimed at increasing access to preventive mental health care for teens. This policy was expected to reduce the incidence of clinically significant psychological problems by 0.7 percentage points, reaching one in ten young people who might otherwise develop depression.
Over ten years, such policies could lead to a $52 billion reduction in federal budget requirements, primarily through improvements in labor force participation within this cohort.
Importance of these results
The estimates from this study provide a valuable resource for government analysts seeking to evaluate the benefits of adolescent mental health policies. By including these findings, analysts can model outcomes with greater confidence. The results extend and improve on previous research in this area through new methods that use machine learning and more refined assumptions.
By 2023, mental health funding reached $60 million annually, enabling care for 500 individuals per million dollars invested. Expanding coverage to 25% of adolescents would require an investment of at least $10 billion. However, the potential economic savings of reaching just 10% of high-risk adolescents underlines the cost-effectiveness of such programs, even when considering only the financial impact.
In addition to direct interventions in the field of mental health care, other policy areas also deserve attention. Strengthening school systems and community initiatives could address the early causes of mental health problems and provide additional opportunities for prevention and support.
Conclusions
The findings from this study underscore the critical importance of investing in adolescent mental health care as a means to promote long-term economic and social benefits. The analysis highlights how early intervention can significantly improve labor force participation, income levels, education levels and overall health outcomes while reducing dependence on government programs.
Furthermore, the study illustrates that policies aimed at preventing mental health problems during adolescence are not just expenses, but valuable investments with measurable returns.
By refining economic models to account for these effects, government analysts can better assess the cost-effectiveness of mental health programs, making a compelling case for increased funding and broader implementation. Projected federal savings of $52 billion over ten years highlight the potential of such policies to ease budget pressures while supporting social well-being.
Expanding access to preventive mental health care and addressing systemic causes of need, such as educational and community disparities, represents a strategic and impactful approach.
These findings call for a perspective shift, recognizing that supporting adolescent mental health is both a moral imperative and an economic opportunity to build a healthier, more productive society.
