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Socioemotional Development during Adolescence: Evidence from a Large Macro Shock

Author

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  • Azmat, Ghazala

    (Sciences Po, Paris)

  • Kaufmann, Katja Maria

    (University of Bayreuth)

  • Özdemir, Yasemin

    (University of Bayreuth)

Abstract

We exploit a large quasi-exogenous shock to study the development of socioemotional skills during adolescence and the consequences for long-term behavior and labor market outlook. Using novel, longitudinal, microdata on cohorts of East German adolescents before and after a large macro shock (the German Reunification), we causally estimate the impact on socioemotional skills, finding substantial negative effects in the short run. These effects are substantially larger among those affected by the shock in their early adolescence (13-14 years old), relative to older adolescents (16-17 years old). Changes in socioemotional skills have a lasting (negative) impact on them as adults, especially among those affected early in their adolescence, in terms of their expressions of externalizing behavior (e.g., physical fighting) and behavioral control problems (i.e., substance abuse), as well as internalizing behavior (i.e., mental health) and in their (labor-market) optimism and expectations. This study highlights the permanent effects of uncertainty on socioemotional skills during formative years.

Suggested Citation

  • Azmat, Ghazala & Kaufmann, Katja Maria & Özdemir, Yasemin, 2023. "Socioemotional Development during Adolescence: Evidence from a Large Macro Shock," IZA Discussion Papers 16187, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16187
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    More about this item

    Keywords

    socioemotional development; youths; behavior; health; education;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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