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The Impact of Stock Market Fluctuations on the Mental and Physical Wellbeing of Children

Author

Listed:
  • Chad Cotti

    (University of Wisconsin Oshkosh)

  • David Simon

    (University of Connecticut)

Abstract

The stock market crash of 2008 caused a severe impact to households. Earlier research has explored the impacts of a stock market crash on life wellbeing, psychological stress, and adult health behaviors. We extend this literature by documenting impacts of stock market fluctuations on a range of child outcomes; including effects on both mental and physical health. We show a negative effect of a market crash on hospitalizations, child reported health status, sick days from school, and emotional difficulties. Both graphical and regression based analysis reveal that our results are not driven by a pre-trend of declining child health before the market crash.

Suggested Citation

  • Chad Cotti & David Simon, 2016. "The Impact of Stock Market Fluctuations on the Mental and Physical Wellbeing of Children," Working papers 2016-28, University of Connecticut, Department of Economics.
    • Handle: RePEc:uct:uconnp:2016-28
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    References listed on IDEAS

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    Cited by:

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    3. Jaesang Sung & Qihua Qiu, 2020. "The Impact of Housing Prices on Health in the United States Before, During, and After the Great Recession," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 910-940, January.
    4. Giulietti, Corrado & Tonin, Mirco & Vlassopoulos, Michael, 2020. "When the market drives you crazy: Stock market returns and fatal car accidents," Journal of Health Economics, Elsevier, vol. 70(C).
    5. Ezra Golberstein & Gilbert Gonzales & Ellen Meara, 2019. "How do economic downturns affect the mental health of children? Evidence from the National Health Interview Survey," Health Economics, John Wiley & Sons, Ltd., vol. 28(8), pages 955-970, August.
    6. Drydakis, Nick, 2022. "Economic recession, parental unemployment and adolescents' health-related quality of life and mental health outcomes in Greece," GLO Discussion Paper Series 1134, Global Labor Organization (GLO).
    7. Hiilamo, Aapo & Hiilamo, Heikki & Ristikari, Tiina & Virtanen, Petri, 2021. "Impact of the Great Recession on mental health, substance use and violence in families with children: A systematic review of the evidence," Children and Youth Services Review, Elsevier, vol. 121(C).
    8. Koh, Kanghyock & Han, Hyojin, 2023. "Stock market risk and suicide," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).

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    More about this item

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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