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Children, unhappiness and family finances

Author

Listed:
  • David G. Blanchflower

    (Dartmouth College
    GLO, Bloomberg and NBER)

  • Andrew E. Clark

    (Paris School of Economics – CNRS)

Abstract

The common finding of a zero or negative correlation between the presence of children and parental well-being continues to generate research interest. We consider international data, including well over one million observations on Europeans from 11 years of Eurobarometer surveys. We first replicate this negative finding, both in the overall data and then for most different marital statuses. Children are expensive: controlling for financial difficulties turns our estimated child coefficients positive. We argue that difficulties paying the bills explain the pattern of existing results by parental education and income and by country income and social support. Last, we underline that not all children are the same, with stepchildren commonly having a more negative correlation with well-being than children from the current relationship.

Suggested Citation

  • David G. Blanchflower & Andrew E. Clark, 2021. "Children, unhappiness and family finances," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 625-653, April.
    • Handle: RePEc:spr:jopoec:v:34:y:2021:i:2:d:10.1007_s00148-020-00798-y
    DOI: 10.1007/s00148-020-00798-y
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    References listed on IDEAS

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    1. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1359-1386, July.
    2. Andrew E. Clark & Anthony Lepinteur, 2022. "A Natural Experiment on Job Insecurity and Fertility in France," The Review of Economics and Statistics, MIT Press, vol. 104(2), pages 386-398, May.
    3. Stutzer, Alois & Frey, Bruno S., 2006. "Does marriage make people happy, or do happy people get married?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(2), pages 326-347, April.
    4. Blanchflower, David G. & Oswald, Andrew J., 2008. "Is well-being U-shaped over the life cycle?," Social Science & Medicine, Elsevier, vol. 66(8), pages 1733-1749, April.
    5. Marco Le Moglie & Letizia Mencarini & Chiara Rapallini, 2019. "Does income moderate the satisfaction of becoming a parent? In Germany it does and depends on education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(3), pages 915-952, July.
    6. Andrew E. Clark & Sarah Flèche & Richard Layard & Powdthavee Nattavudh, 2018. "The Origins of Happiness: The Science of Well-Being over the Life Course," Post-Print halshs-01631510, HAL.
    7. Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2008. "Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis," Economic Journal, Royal Economic Society, vol. 118(529), pages 222-243, June.
    8. Sophie Cetre & Andrew E. Clark & Claudia Senik, 2016. "Happy People Have Children: Choice and Self-Selection into Parenthood," European Journal of Population, Springer;European Association for Population Studies, vol. 32(3), pages 445-473, August.
    9. Mikko Myrskylä & Rachel Margolis, 2014. "Happiness: Before and After the Kids," Demography, Springer;Population Association of America (PAA), vol. 51(5), pages 1843-1866, October.
    10. Alesina, Alberto & Di Tella, Rafael & MacCulloch, Robert, 2004. "Inequality and happiness: are Europeans and Americans different?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 2009-2042, August.
    11. Angus Deaton, 2012. "The financial crisis and the well-being of Americans," Oxford Economic Papers, Oxford University Press, vol. 64(1), pages 1-26, January.
    12. Stanca, Luca, 2012. "Suffer the little children: Measuring the effects of parenthood on well-being worldwide," Journal of Economic Behavior & Organization, Elsevier, vol. 81(3), pages 742-750.
    13. Mariano Rojas (ed.), 2019. "The Economics of Happiness," Springer Books, Springer, number 978-3-030-15835-4, September.
    14. John Gathergood, 2012. "Debt and Depression: Causal Links and Social Norm Effects," Economic Journal, Royal Economic Society, vol. 122(563), pages 1094-1114, September.
    15. Rachel Margolis & Mikko Myrskylä, 2011. "A Global Perspective on Happiness and Fertility," Population and Development Review, The Population Council, Inc., vol. 37(1), pages 29-56, March.
    16. Chris M. Herbst & John Ifcher, 2016. "The increasing happiness of US parents," Review of Economics of the Household, Springer, vol. 14(3), pages 529-551, September.
    17. Arnstein Aassve & Alice Goisis & Maria Sironi, 2012. "Happiness and Childbearing Across Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(1), pages 65-86, August.
    18. Marta E Barazzetta & Andrew E. Clark & Conchita D’ambrosio, 2017. "Childhood Circumstances and Young Adulthood Outcomes: The Effects of Mothers' Financial Problems," Working Papers halshs-01622334, HAL.
    19. Matthias Pollmann-Schult, 2018. "Parenthood and Life Satisfaction in Europe: The Role of Family Policies and Working Time Flexibility," European Journal of Population, Springer;European Association for Population Studies, vol. 34(3), pages 387-411, August.
    20. Mikko Myrskylä & Rachel Margolis, 2014. "Happiness - before and after the Kids," SOEPpapers on Multidisciplinary Panel Data Research 642, DIW Berlin, The German Socio-Economic Panel (SOEP).
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    Cited by:

    1. Andrew E. Clark & Hippolyte d’Albis & Angela Greulich, 2021. "The age U-shape in Europe: the protective role of partnership," Vienna Yearbook of Population Research, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna, vol. 19(1), pages 293-318.
    2. David G. Blanchflower & Alex Bryson, 2024. "The female happiness paradox," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-27, March.
    3. Eiji Yamamura & Fumio Ohtake, 2023. "Family Structure, Gender and Subjective Well-being: Effect of Child ren before and after COVID 19 in Japan," Papers 2312.04411, arXiv.org.
    4. David G. Blanchflower & Carol L. Graham, 2022. "The Mid-Life Dip in Well-Being: a Critique," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(1), pages 287-344, May.

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    More about this item

    Keywords

    Children; Subjective well-being; Age; Financial difficulties; Eurobarometer;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • 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

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