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What childhood characteristics predict psychological resilience to economic shocks in adulthood?

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  • Powdthavee, Nattavudh

Abstract

This paper investigates whether people’s psychological resilience to one of the most important economic shocks – job loss – can be predicted using early childhood characteristics. Using a longitudinal data that tracked almost 3000 children into adulthood, we showed that the negative effect of unemployment on mental well-being and life satisfaction is significantly larger for workers who, as adolescents, had a relatively poor father-child relationship. Maternal unemployment, on the other hand, is a good predictor of how individuals react psychologically to future unemployment. Although the results should be viewed as illustrative and more research is needed, the current article provides new longitudinal evidence that psychological resilience to job loss may be determined early on in the life cycle.

Suggested Citation

  • Powdthavee, Nattavudh, 2014. "What childhood characteristics predict psychological resilience to economic shocks in adulthood?," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 84-101.
    • Handle: RePEc:eee:joepsy:v:45:y:2014:i:c:p:84-101
    DOI: 10.1016/j.joep.2014.08.003
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    2. Antoine Marsaudon, 2019. "Do Health Shocks Modify Personality Traits? Evidence from Locus Of Control," Working Papers halshs-01976868, HAL.
    3. Andrew E. Clark, 2016. "Adaptation and the Easterlin Paradox," Creative Economy, in: Toshiaki Tachibanaki (ed.), Advances in Happiness Research, edition 1, chapter 0, pages 75-94, Springer.
    4. David W. Johnston & Claryn S. J. Kung & Michael A. Shields, 2021. "Who is resilient in a time of crisis? The importance of financial and non‐financial resources," Health Economics, John Wiley & Sons, Ltd., vol. 30(12), pages 3051-3073, December.
    5. Buddelmeyer, Hielke & Powdthavee, Nattavudh, 2016. "Can having internal locus of control insure against negative shocks? Psychological evidence from panel data," Journal of Economic Behavior & Organization, Elsevier, vol. 122(C), pages 88-109.
    6. Martínez-Jiménez, Mario, 2023. "Parental nonemployment in childhood and children’s health later in life," Economics & Human Biology, Elsevier, vol. 49(C).
    7. Nikolova, Milena & Nikolaev, Boris N., 2021. "Family matters: The effects of parental unemployment in early childhood and adolescence on subjective well-being later in life," Journal of Economic Behavior & Organization, Elsevier, vol. 181(C), pages 312-331.
    8. Dusanee Kesavayuth & Vasileios Zikos, 2018. "Happy People Are Less Likely To Be Unemployed: Psychological Evidence From Panel Data," Contemporary Economic Policy, Western Economic Association International, vol. 36(2), pages 277-291, April.
    9. Kesavayuth, Dusanee & Zikos, Vasileios, 2016. "Does well-being help you with unemployment?," MPRA Paper 71918, University Library of Munich, Germany.
    10. Ahmed, Rifaan & Kesavayuth, Dusanee & Zikos, Vasileios, 2018. "Does being smarter make you happier? Evidence from Europe," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 76(C), pages 55-67.
    11. Melanie Borah & Andreas Knabe & Christine Lücke, 2023. "Is a Sorrow Shared a Sorrow Doubled? Parental Unemployment and the Life Satisfaction of Adolescent Children," CESifo Working Paper Series 10776, CESifo.

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    More about this item

    Keywords

    Resilience; Happiness; Unemployment; Childhood; BHPS;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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