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Childhood circumstances and young adult outcomes: the role of mothers' financial problems

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  • Clark, Andrew E.
  • D’Ambrosio, Conchita
  • Barrazzetta, Marta

Abstract

We here consider the cognitive and non-cognitive consequences on young adults of growing up with a mother who reported experiencing major financial problems. We use UK data from the Avon Longitudinal Study of Parents and Children to show that early childhood financial problems are associated with worse adolescent cognitive and non-cognitive outcomes, controlling for both income and a set of standard variables, and in valueadded models controlling for children’s earlier age-5 outcomes. The estimated effect of financial problems is almost always larger in size than that of income. Around one-quarter to one-half of the effect of financial problems on the non-cognitive outcomes seems to transit through mother’s mental health.

Suggested Citation

  • Clark, Andrew E. & D’Ambrosio, Conchita & Barrazzetta, Marta, 2019. "Childhood circumstances and young adult outcomes: the role of mothers' financial problems," LSE Research Online Documents on Economics 102630, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:102630
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    More about this item

    Keywords

    income; financial problems; child outcomes; subjective well-being; behaviour; education; ALSPAC;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D60 - Microeconomics - - Welfare Economics - - - General

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