New evidence on a classic sociological debate allows for a test of the consequences of self-labeling with mental illness. While a medicalized “insight” perspective emphasizes the importance of self-labeling for psychological well-being and recovery, a sociologically informed “outsight” perspective draws from modified labeling, self-labeling, and stigma resistance theories to suggest that self-labeling can generate negative consequences for self-esteem. We engage this debate by examining the effects of mental illness self-labels on a crucial component of psychological well-being for persons with mental health problems—self-esteem—by using longitudinal data that followed 427 sixth-grade youth over two years. Our findings support an outsight perspective whereby adopting a self-label led to decreased self-esteem, while those who dropped a self-label experienced increased self-esteem. This conclusion calls for revisions to prevailing public mental health models that overlook how self-labels can impede rather than enhance psychological well-being and recovery efforts.
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