2020
DOI: 10.3386/w27157
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Poverty, Depression, and Anxiety: Causal Evidence and Mechanisms

Abstract: Why are people living in poverty disproportionately affected by mental illness? We review the interdisciplinary evidence of the bi-directional causal relationship between poverty and common mental illnesses -depression and anxiety -and the underlying mechanisms. Research shows that mental illness reduces employment and therefore income and that psychological interventions generate economic gains. Similarly, negative economic shocks cause mental illness, and anti-poverty programs, such as cash transfers, improv… Show more

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Cited by 127 publications
(164 citation statements)
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“…In sum, we find that CTs, on average, have a positive effect on MH and SWB indicators among recipients. More precisely, we find, as do Ridley et al (2020), an average impact of about 0.10 SDs. Additionally, we observe that the effects of CTs appear to only dissipate slowly over time, if at all.…”
Section: Discussionsupporting
confidence: 66%
See 2 more Smart Citations
“…In sum, we find that CTs, on average, have a positive effect on MH and SWB indicators among recipients. More precisely, we find, as do Ridley et al (2020), an average impact of about 0.10 SDs. Additionally, we observe that the effects of CTs appear to only dissipate slowly over time, if at all.…”
Section: Discussionsupporting
confidence: 66%
“…This may be particularly true for those at low income levels (Clark, 2017;Deaton, 2008). A similar relationship is also observed in the MH literature (Karimli et al, 2019;Tampubolon & Hanandita, 2014;Schilbach et al, 2016;Ridley et al, 2020). Moreover, mental health problems may engender and perpetuate poverty (Haushofer & Fehr, 2014).…”
Section: Introductionsupporting
confidence: 63%
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“…* Related work using cross-sectional data finds an association between self-reported changes in physical activity during the pandemic and measures of mental health (25). This paper also relates to the broader research on the determinants of men-* The Healthy Minds Network report (https://healthymindsnetwork.org/wp-content/ uploads/2020/09/Healthy Minds NCHA COVID Survey Report FINAL.pdf) estimated that 40% of surveyed college students were at risk for depression based on the Patient Health Questionnaire-9 scale (23) tal health (26)(27)(28)(29)(30) as well as work on health behavior change. Prior studies demonstrate how changing circumstances or context can quickly disrupt healthy habits (31,32).…”
mentioning
confidence: 99%
“…The anticipation of economic shocks may cause mental illness such as mania. People living in poverty face substantial uncertainty and income volatility and complex financial portfolios, often without access to formal insurance; this might increase the risk of developing bipolar symptoms (80,81).…”
Section: Discussionmentioning
confidence: 99%