Is It Over Now? (Giver's Version): Financial Giving, Economic Shocks, and Resilience to Depression in Older Europeans

This study examines whether providing financial transfers influences depressive symptoms among older European adults and explores whether income or wealth shocks moderate this relationship. Using longitudinal data from the Survey of Health, Aging, and Retirement in Europe (SHARE) and a staggered dynamic Difference-in-Differences approach, this work assesses the psychological consequences of financial giving across diverse socioeconomic contexts. Results indicate that while giving initially leads to a decline in mental well-being, this effect diminishes over time, suggesting an adjustment process rather than lasting distress. The negative impact is strongest among women and those still employed, while retirees experience weaker effects. Contrary to expectations, negative income and wealth shocks do not significantly amplify depressive symptoms, implying that financial strain alone does not drive the relationship between giving and mental health. Instead, financial giving appear to be shaped by long-term social commitments, moral obligations, and ingrained norms rather than short-term economic considerations. These findings remain robust when combining propensity score matching with the staggered dynamic Difference-in-Differences estimation.