Mental Health over the Life Course: Evidence for a U-Shape?

Abstract

We aim to identify the age-profile of mental health while introducing minimal bias to reach identification. Using mental health data from the US Panel Study of Income Dynamics (PSID) we apply first difference estimation to derive an unbiased estimate of the second derivative of the age effect as well as an estimate up to a linear period trend of the first derivative. Next, we use a battery of estimators with varying restrictions to approximate the first derivative. We find conclusive evidence that the age profile of mental health in the US is not U-shaped and tentative evidence that the age-profile follows an inverse U-shape where individuals experience a mental health high during their life course. Further analyses, using German and Dutch data, confirm that these results do not only apply to the US, but also to Germany and to the Netherlands.