In order to evaluate the extent to which economic factors influence the life choices of people with mental illness, we interviewed 50 mentally ill people living in Boulder, Colorado.
Subjects experience significant financial disincentives to work.
Work disincentives could be improved by a more appropriately graduated scheme for reducing disability benefits for beginning workers. A wage subsidy would provide a work incentive to underproductive clients. Psychiatric treatment costs for unemployed subjects in this sample are twice those for part-time employed. We suggest that research is needed to determine if treatment costs can be reduced by paying clients a wage subsidy. Most people with schizophrenia can work even if they have symptoms.