Scandinavian Working Papers in Economics
Working Papers,
Copenhagen Business School, Department of Economics
No 12-2026: Cross-Border Mental Health Spillovers of War
Lisbeth la Cour (), Sanne Kruse-Becher (), Birthe Larsen () and Martin Jepsen Mejlgaard ()
Additional contact information
Lisbeth la Cour: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Sanne Kruse-Becher: Baden-Württemberg Cooperative State University Stuttgart, Postal: Paulinenstraße 50, Raum: 006, 70178 Stuttgart, Germany
Birthe Larsen: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Martin Jepsen Mejlgaard: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Abstract: Wars generate economic costs beyond conflict zones through diaspora networks. We examine how war onset in immigrants’ countries of origin affects mental health in Denmark using nationwide administrative registers and a within-individual event-study design. Psychotropic medication use rises persistently following war onset, particularly among non-citizens, parents, and individuals with a same-origin spouse, but only when conflicts persist. Higher local co-ethnic concentration attenuates these effects. We further show that war onset increases publicly financed pharmaceutical expenditure, implying measurable fiscal costs for immigrant receiving countries. These findings reveal important cross-border welfare spillovers of armed conflict.
Keywords: International migration; War; Mental health
Language: English
59 pages, June 2026
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