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Socioemotional Development During Adolescence: Evidence from a Large Macro Shock

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  • Ghazala Azmat

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, CEP - LSE - Centre for Economic Performance - LSE - London School of Economics and Political Science, CEPR - Center for Economic Policy Research, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

  • Katja Maria Kaufmann

    (Universität Bayreuth [Deutschland] = University of Bayreuth [Germany] = Université de Bayreuth [Allemagne], IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics)

  • Yasemin Özdemir

    (Universität Bayreuth [Deutschland] = University of Bayreuth [Germany] = Université de Bayreuth [Allemagne])

Abstract

We exploit a large quasi-exogenous shock to study the development of socioemotional skills during early adolescence and their links to long-term behavior and labor market outlook. Using novel, longitudinal, microdata on cohorts of East German adolescents before and after a large macro shock (the German Reunification), we causally estimate the impact on socioemotional skills (self-confidence and impulse control), finding negative effects in the short run. These effects are substantially larger among those affected by the shock in early adolescence (13-14 years old), relative to later adolescence (16-17 years old). Changes in socioemotional skills have a lasting (negative) impact on them as adults, especially among those affected early in their adolescence, in terms of externalizing behavior (e.g., physical fighting), behavioral control problems (i.e., substance abuse), internalizing behavior (i.e., mental health) and in their (labor-market) optimism and expectations. This study highlights the permanent effects of uncertainty on socioemotional skills during formative years.

Suggested Citation

  • Ghazala Azmat & Katja Maria Kaufmann & Yasemin Özdemir, 2023. "Socioemotional Development During Adolescence: Evidence from a Large Macro Shock," Sciences Po Economics Discussion Papers hal-04350544, HAL.
    • Handle: RePEc:hal:wpspec:hal-04350544
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-04350544v1
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    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • 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
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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