DP19091 The Economic Burden of Burnout

• Arash Nekoei Jósef Sigurdsson Dominik Wehr
21 May 2024

We study occupational stress, from its initial symptoms to permanent productivity loss, using Swedish administrative data. Stress symptoms emerge and steadily intensify over a year, culminating in a tipping point of burnout. High-stress occupations do not see higher burnout rates among stress-tolerant workers, but disproportionately affect those with low stress tolerance. Burnout results in substantial and permanent earnings losses, with similar magnitude across genders, despite women being three times more susceptible. Burnout’s toll spills over, reducing spousal earnings and children’s human capital (school grades and college enrollment), especially in lower-educated families, thereby stalling intergenerational mobility. Through sick leaves, earnings losses, and spillovers, burnout reduces national labor income by 3.6%. Combining our cost estimates with a prediction model of burnout—enhanced by a brief, high-frequency occupational stress survey—can optimize the scope and targeting of preventive programs and reduce the economic burden of burnout.