Objective-To update estimates of the associations between mental disorders and earnings from those of Rice et al. for 1985and Harwood et al. for 1992. Current estimates, for 2002, are based on data from the National Comorbidity Survey Replication (NCS-R).Methods-The NCS-R is a nationally representative survey of the US household population administered in 2001-03. Following the same basic approach as the prior studies, with some modifications to improve model-fitting, we predicted personal earnings in the 12 months before interview from information about 12-month and lifetime DSM-IV mental disorders among respondents ages 18-64, controlling for socio-demographics and substance disorders. We used conventional demographic rate standardization methods to distinguish predictive effects of mental disorders on amount earned by people with earnings from predictive effects on probability of having any earnings.Results-Twelve-month DSM-IV serious mental illness (SMI) significantly predicted reduced earnings. Other 12-month and lifetime DSM-IV/CIDI disorders did not. Respondents with SMI had 12-month earnings averaging $16,306 less than other respondents with the same values on control variables ($26,435 among males; $9,302 among females), for a societal-level total of $193.2 billion. Of this total, 75.4% was due to reduced earnings among mentally ill people with any earnings (79.6% males; 69.6% females). The remaining 24.6% was due to reduced probability of having any earnings.Conclusions-These results add to a growing body of evidence that mental disorders are associated with substantial societal-level impairments that should be taken into consideration in making decisions about the allocation of treatment and research resources.Send reprint comments to