Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/300056 
Year of Publication: 
2024
Series/Report no.: 
CESifo Working Paper No. 11128
Publisher: 
CESifo GmbH, Munich
Abstract: 
We study the economic consequences of stress-related occupational illnesses (burnout) using Swedish administrative data. Using a mover design, we find that high-burnout firms and stressful occupations universally raise burnout risk yet disproportionately impact low-stress-tolerance workers. Workers who burn out endure permanent earnings losses regardless of gender—while women are three times more susceptible. Repercussions of burnout extend to the worker's family, reducing spousal income and children's educational achievements. Through sick leaves, earnings scars, and spillovers, burnout reduced the national labor income by 2.3% in 2019. We demonstrate how estimated costs, combined with a prediction model incorporating workers' self-reported stress, can improve the design of prevention programs.
Subjects: 
amenities
mental health
employment
misallocation
fiscal cost
JEL: 
E24
J21
J28
I18
Document Type: 
Working Paper
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