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What childhood characteristics predict psychological resilience to economic shocks in adulthood?

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  • Powdthavee, Nattavudh

Abstract

This paper investigates whether people’s psychological resilience to one of the most important economic shocks – job loss – can be predicted using early childhood characteristics. Using a longitudinal data that tracked almost 3000 children into adulthood, we showed that the negative effect of unemployment on mental well-being and life satisfaction is significantly larger for workers who, as adolescents, had a relatively poor father-child relationship. Maternal unemployment, on the other hand, is a good predictor of how individuals react psychologically to future unemployment. Although the results should be viewed as illustrative and more research is needed, the current article provides new longitudinal evidence that psychological resilience to job loss may be determined early on in the life cycle.

Suggested Citation

  • Powdthavee, Nattavudh, 2014. "What childhood characteristics predict psychological resilience to economic shocks in adulthood?," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 84-101.
  • Handle: RePEc:eee:joepsy:v:45:y:2014:i:c:p:84-101
    DOI: 10.1016/j.joep.2014.08.003
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    References listed on IDEAS

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    Cited by:

    1. Andrew E. Clark, 2015. "Adaptation and the Easterlin Paradox," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-01112725, HAL.
    2. Buddelmeyer, Hielke & Powdthavee, Nattavudh, 2016. "Can having internal locus of control insure against negative shocks? Psychological evidence from panel data," Journal of Economic Behavior & Organization, Elsevier, vol. 122(C), pages 88-109.
    3. Andrew E. Clark, 2015. "Adaptation and the Easterlin Paradox," Working Papers halshs-01112725, HAL.
    4. Kesavayuth, Dusanee & Zikos, Vasileios, 2016. "Does well-being help you with unemployment?," MPRA Paper 71918, University Library of Munich, Germany.

    More about this item

    Keywords

    Resilience; Happiness; Unemployment; Childhood; BHPS;

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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