Early Life Circumstance and Mental Health in Ghana

We study the origins of adult mental health using early life income fluctuations. Combining a time series of real producer prices of cocoa with a nationally representative household survey in Ghana, we show that a one standard deviation rise in the cocoa price in early life decreases the likelihood of severe mental distress in adulthood by 3 percentage points (or half the mean prevalence) for cohorts born in cocoa-producing regions relative to other regions. Impacts on related personality traits are consistent with this result. Maternal nutrition, reinforcing childhood investments, and adult circumstance are operative channels of impact.