Friday, January 18, 2013

Compound Interest in real life

"As ADHD has become one of the most prevalent childhood mental conditions, it is useful to understand the full set of consequences of the illness.  This paper uses a longitudinal national sample, including sibling pairs, to show important labor market outcome consequences of ADHD.  The employment reduction is between 10-14 percentage points, the earnings reduction is approximately 33%, and the increase in social assistance is 15 points, which are larger than many estimates of the black-white earnings gap and the gender earnings gap.  A small share of the link is explained by education attainments and co-morbid health conditions and behaviors.  The results also show important differences in labor market consequences by family background and age of onset. These findings, along with similar research showing that ADHD is linked with poor education outcomes and adult crime, suggest that treating childhood ADHD can substantially increase the acquisition of human capital..."

How Is Early-Childhood Intervention Like Compound Interest?


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