Economic Empowerment and Mental Health: Evidence from India

Abstract

This paper examines the scope of women’s empowerment in improving mental health. Exploiting variation from a legal reform intended to increase women’s inheritance rights in India, we find that women exposed to the reform exhibit significantly better markers of mental health in adulthood. Overall, their mental health index improved by 0.093σ. Specifically, they are 3.8 percentage points less likely to be depressed, 3.9 percentage points less likely to have trouble concentrating, and 3.3 percentage points less likely to feel afraid. We uncover spillover effects of similar magnitudes on the husbands of treated women. No such effects are observed for individuals from the same state-cohort groups belonging to religious communities to which the reform did not apply. Treated households report significantly higher rates of land ownership, and treated women have a 0.08σ higher autonomy index. These findings underscore the effectiveness of policies that empower women in enhancing mental well-being.