Job Talk: Ronja Helénsdotter, MIT Sloan, and University of Gothenburg

Seminar

Date: Thursday 27 November 2025

Time: 10.00 – 11.15

Location: IIES Seminar Room, A822

Treated Together: Spillovers Among Youths Admitted to Residential Treatment

Abstract:

Individuals struggling with substance abuse and self-harm are often
treated in group-based programs. However, concerns have been raised
about the risk of adverse outcomes through peer-to-peer spillovers. This
paper analyses the effects of peers placed in residential treatment
facilities on each other's outcomes. I use novel data on the universe of
youths (over 16,000) admitted to state-owned treatment facilities in
Sweden between 2000 and 2020. To overcome the issue of nonrandom
assignment of youths, I use an IV design and exploit the natural flow of
youths to and from facilities within a given year. I find strong
evidence of reinforcing peer effects in substance abuse and self-harm:
exposing youths with a history of substance abuse (self-harm) to peers
with a similar background greatly increases the risk of hospitalization
due to substance abuse (self-harm) post-discharge. Social influence is a
likely mediator. Moreover, increased exposure to peer substance abuse
has a significant negative impact on youths' educational attainment,
partly through the effect on own substance abuse.

Last updated: October 31, 2025

Source: Institute for International Economic Studies (IIES)

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