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Childhood Circumstances and Young Adulthood Outcomes: The Effects of Mothers' Financial Problems

Author

Listed:
  • Marta Barazzetta

    (Uni.lu - Université du Luxembourg)

  • Andrew E. Clark

    (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Conchita D’ambrosio

    (Uni.lu - Université du Luxembourg)

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 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. 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

  • Marta Barazzetta & Andrew E. Clark & Conchita D’ambrosio, 2017. "Childhood Circumstances and Young Adulthood Outcomes: The Effects of Mothers' Financial Problems," PSE Working Papers halshs-01622334, HAL.
  • Handle: RePEc:hal:psewpa:halshs-01622334
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    References listed on IDEAS

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    Cited by:

    1. David G. Blanchflower & Andrew E. Clark, 2019. "Children, Unhappiness and Family Finances: Evidence from One Million Europeans," NBER Working Papers 25597, National Bureau of Economic Research, Inc.
    2. 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.

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    Keywords

    Behaviour; ALSPAC; Education; Income; Poverty; Subjective well-being;
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