Mental Health and Lifelong Productivity

Data by the German Pension Insurance shows that, in general, the number of newly awarded disability pensions in Germany has been declining in recent years. However, the share of disability pensions granted due to mental health diagnoses has increased considerably compared to pensions granted due to physical health diagnoses. In the current project, on the one hand, we will analyze administrative data from the German Pension Insurance with regard to past and future developments of disability pensions due to mental health diagnoses. On the other hand, we will collect micro data on individuals at working age (18 to 63) regarding employment, earnings capacity and mental health twice, at intervals of one year, in collaboration with the German Mental Health Barometer - Digital Panel of the DZPG. We will use this data to analyze individual trajectories of mental health, employment and earnings capacity, along with the relationships between these aspects. Together, these two components will provide insights into the current links between reduced earnings capacity and mental health, as well as possible future scenarios for reduced earnings capacity due to mental health conditions. In view of demographic prospects, labor market trends and the strained situation of the German pension and social welfare system, potential future scenarios as well as preventative measures that could be applied are of great practical relevance.