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The Impact Of Stock Market Fluctuations On The Mental And Physical Well‐Being Of Children

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  • Chad Cotti
  • David Simon

Abstract

The stock market crash of 2008 caused a severe impact to households. Earlier research has explored the impacts of a stock market crash on life well‐being, psychological stress, and adult health behaviors. We extend this literature by documenting impacts of stock market fluctuations on a range of child outcomes; including effects on both mental and physical health. We show a negative effect of a market crash on hospitalizations, child reported health status, sick days from school, and an aggregate health index measure. Both graphical and regression‐based analysis reveal that our results are not driven by a preexisting trend of declining child health before the market crash and extensive sensitivity analysis demonstrates that the results are robust to multiple empirical specifications. (JEL I15, E32, J13)

Suggested Citation

  • Chad Cotti & David Simon, 2018. "The Impact Of Stock Market Fluctuations On The Mental And Physical Well‐Being Of Children," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1007-1027, April.
    • Handle: RePEc:bla:ecinqu:v:56:y:2018:i:2:p:1007-1027
    DOI: 10.1111/ecin.12528
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    3. Jaesang Sung & Qihua Qiu, 2020. "The Impact of Housing Prices on Health in the United States Before, During, and After the Great Recession," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 910-940, January.
    4. Lauren Jones & Mark Stabile & Kourtney Koebel & Jill Furzer, 2024. "The Effect of Household Earnings on Child School Mental Health Designations: Evidence from Administrative Data," Journal of Human Resources, University of Wisconsin Press, vol. 59(S), pages 41-76.
    5. Hiilamo, Aapo & Hiilamo, Heikki & Ristikari, Tiina & Virtanen, Petri, 2021. "Impact of the Great Recession on mental health, substance use and violence in families with children: A systematic review of the evidence," Children and Youth Services Review, Elsevier, vol. 121(C).
    6. Koh, Kanghyock & Han, Hyojin, 2023. "Stock market risk and suicide," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
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    9. Drydakis, Nick, 2022. "Economic recession, parental unemployment and adolescents' health-related quality of life and mental health outcomes in Greece," GLO Discussion Paper Series 1134, Global Labor Organization (GLO).

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    More about this item

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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