The Long-Term Effects of the Chernobyl Catastrophe on Subjective Well-Being and Mental Health

65 Pages Posted: 22 Aug 2011

See all articles by Alexander M. Danzer

Alexander M. Danzer

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics; IZA Institute of Labor Economics

Natalia Danzer

Free University of Berlin (FUB) - School of Business & Economics; CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Abstract

This paper assesses the long-term subjective well-being and mental health toll of the Chernobyl disaster of 1986 in the general Ukrainian population and estimates the monetary differential necessary to compensate victims of the catastrophe. The analysis is based on two nationally representative Ukrainian data sets and reveals that even 20 years after the accident subjective well-being is negatively associated with self-reported assessments of having been affected by the catastrophe. The causal long-term effect of the disaster on life satisfaction is established by exploiting variation in official radiation data which are linked to survey respondents through information on their place of living in 1986. We find higher depression and trauma rates as well as poorer subjective life expectancy among those stronger affected by Chernobyl. Expressed in monetary terms, the estimated amount of income required to compensate for the experienced utility loss amounts to an annual cost of seven percent of Ukraine's GDP.

Keywords: Chernobyl catastrophe, subjective well-being, mental health, instrumental variable

JEL Classification: D60, I18, I31, J28

Suggested Citation

Danzer, Alexander M. and Danzer, Natalia, The Long-Term Effects of the Chernobyl Catastrophe on Subjective Well-Being and Mental Health. IZA Discussion Paper No. 5906, Available at SSRN: https://ssrn.com/abstract=1913613 or http://dx.doi.org/10.2139/ssrn.1913613

Alexander M. Danzer (Contact Author)

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics ( email )

Ludwigstrasse 28
Munich, D-80539
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Natalia Danzer

Free University of Berlin (FUB) - School of Business & Economics ( email )

Germany

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

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