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Childhood circumstances and young adulthood outcomes: The role of mothers' financial problems
Author(s) -
Clark Andrew E.,
D'Ambrosio Conchita,
Barazzetta Marta
Publication year - 2021
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.4194
Subject(s) - quarter (canadian coin) , cognition , psychology , longitudinal study , mental health , cognitive skill , early adulthood , finance , developmental psychology , young adult , demography , medicine , economics , psychiatry , sociology , archaeology , pathology , history
We here consider the cognitive and noncognitive 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 noncognitive outcomes, controlling for both income and a set of standard variables, and in value‐added 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 noncognitive outcomes seems to transit through mother's mental health.