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Adolescents from low socioeconomic status (SES) backgrounds who also experience mental health issues face significantly reduced earnings compared to peers until the age of 55, according to a new study led by academics at the Care Policy and Evaluation Centre (CPEC) at LSE.
The research draws on data from the 1958 National Child Development Study and follows participants into their adult life to examine the impact on long-term economic outcomes of low SES in childhood alongside mental health problems during adolescence.
The study also provides new insights into the gender-specific effects of conduct and emotional problems and underscores the ways in which early-life challenges can shape economic trajectories well into mid-life.
Key findings include:
- Double Disadvantage: Adolescents who experienced both low SES and conduct problems saw a larger negative impact on their earnings by mid-life compared to those who had either risk factor alone.
- Gender Differences: By age 55, men from low-SES backgrounds with conduct problems earned 18.5 per cent less than those without these issues, while women from similar backgrounds experienced an even greater earnings gap, at 23.7 per cent.
- Impact of Conduct Problems: Conduct disorders, such as disobedience or truancy during adolescence, were a stronger predictor of reduced earnings, especially when coupled with low SES, highlighting the persistent financial impact of behavioural issues.
- Emotional Problems and Gender: While emotional problems had a significant impact on men’s earnings, with severe cases reducing earnings up to 8.5 per cent, no similar association was found for women.
For policymakers and public health officials, this research underscores the urgency of addressing both the social determinants of health and the specific mental health needs of adolescents from low-SES backgrounds. The enduring impact on earnings highlights the need for comprehensive approaches that span mental health, education and employment.
The study calls for greater investment in adolescent mental health care, particularly for those from socioeconomically disadvantaged backgrounds, to prevent the widening of inequalities in adulthood. These interventions could have far-reaching economic and societal benefits, helping to break the cycle of poverty and poor mental health outcomes.
The study’s findings are particularly relevant in the context of today’s growing mental health crisis among adolescents. Mental health issues such as anxiety, depression, and conduct disorders are becoming more prevalent, with long waiting times for services creating barriers to high quality treatment, particularly for those from disadvantaged backgrounds. “While mental health services for adolescents have improved since the 1970s, challenges in equitable access and service provision remain,” the authors note, drawing attention to the increasing mental health needs of young people today.
Dr Sara Evans-Lacko, Associate Professorial Research Fellow at CPEC and lead author of the study, said: "Our research underscores the need for policies that not only support mental health but also address the underlying socioeconomic structures that perpetuate disadvantage. Simply improving access to mental health care is not enough; without confronting the systemic inequalities that limit access to care and resources, these patterns of long-term disadvantage will continue."