The Long Reach of Childhood Health Problems on Labor Market Outcomes

We investigate which dimensions of early-life health predict an individual’s labor market outcomes over the entire life cycle in thirteen European countries using SHARE data. Our wage results show childhood mental health problems decrease lifetime earnings significantly and matter more than childhood physical health problems, mainly because effects appear earlier in the working life and persist until the age of retirement. Results for full-time work suggest the effect of childhood mental health is greater near the end of working life. Our comparison by social insurance system suggests that the negative effects of mental health are greater in less egalitarian systems.