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The Lasting Well-being Effects of Early Adulthood Macroeconomic Crises

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  • Hovi Matti

    (Faculty of Management and Business, Tampere University)

Abstract

This paper studies the effects of macroeconomic crises experienced in early adulthood on subjective well-being later in life. Using repeated cross-sectional survey data of over 100 000 individuals from 38 countries around the world combined with historical data on macroeconomic circumstances, I find that having experienced a macroeconomic crisis at ages 18 to 25 is detrimental to subjective well-being. This result is in line with earlier literature that focuses on other individual-level outcomes. However, the analysis presented in this paper reveals that outcomes related to individual’s earnings, employment status, family life, and religion cannot fully explain the lasting effect of a macroeconomic crises on well-being. Results on heterogeneous responses show that the negative effect is largest for females and for individuals with low educational attainment.

Suggested Citation

  • Hovi Matti, 2020. "The Lasting Well-being Effects of Early Adulthood Macroeconomic Crises," Working Papers 1823, Tampere University, Faculty of Management and Business, Economics.
    • Handle: RePEc:tam:wpaper:1823
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    File URL: http://urn.fi/URN:ISBN:978-952-03-1604-4
    File Function: Second version, 2020
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    References listed on IDEAS

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    More about this item

    Keywords

    Subjective well-being; Happiness; Life satisfaction; Macroeconomic crises; Recession;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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