Essays in Economics of Mental Health

The dissertation comprises several papers investigating the economics of mental health, focusing on the negative impact of mental illness and its determinants. In the first chapter, the relationship between depression and risky health behaviors, such as substance use and risky sexual activity, is analyzed. Utilizing data from the National Longitudinal Study of Adolescent to Adult Health, the study finds that depression significantly increases engagement in risky health behaviors. Instrumental variables are employed to address confounding factors, revealing that depression can influence these behaviors through changes in risk preferences, contentiousness, future orientation, and perceived social support. The second chapter explores the role of social media in mental health, particularly among college students during the Covid-19 pandemic. While initial effects are insignificant during social distancing, significant negative effects emerge when colleges resume in-person activities, especially for socially isolated students. The study suggests a potential substitution away from activities supportive of mental health. The third chapter investigates the impact of educational attainment on depression among young adults. Using genetic scores as an instrument for education, the study finds that obtaining a college degree significantly reduces depression symptoms and the likelihood of experiencing major depression. These effects remain robust when relaxing assumptions about the instrument's exclusion restrictions. Moreover, education benefits the mental health of LGBTQ+ individuals more compared to heterosexuals. The findings imply that promoting educational attainment could be a viable strategy for combating depression, given its positive effects on labor market outcomes and health behaviors.