The Lasting Well-Being Effects of Early Adulthood Macroeconomic Crises

Matti Hovi

doi:10.1111/roiw.12551

The Lasting Well-Being Effects of Early Adulthood Macroeconomic Crises

Matti Hovi^*

^*Corresponding author for this work

Business Studies

Research output: Contribution to journal › Article › Scientific › peer-review

3 Citations (Scopus)

21 Downloads (Pure)

Abstract

This paper studies the effects of macroeconomic crises experienced in early adulthood on subjective well-being (SWB) later in life. Using repeated cross-sectional survey data of over 100,000 individuals from 38 countries around the world combined with historical data on macroeconomic circumstances, I find that having experienced a macroeconomic crisis at ages 18–25 is detrimental to SWB. This result is in line with earlier literature that focuses on other individual-level outcomes. However, the analysis presented in this paper reveals that outcomes related to individual’s earnings, employment status, family life, and religion cannot fully explain the lasting effect of macroeconomic crises on well-being. Results on heterogeneous responses show that the negative effect is largest for females and for individuals with low educational attainment.

Original language	English
Pages (from-to)	76-99
Journal	Review of Income and Wealth
Volume	69
Issue number	1
Early online date	5 Oct 2021
DOIs	https://doi.org/10.1111/roiw.12551
Publication status	Published - 2023
Publication type	A1 Journal article-refereed

Funding

: I would like to thank the editor Conchita D’Ambrosio and two anonymous referees for their comments, which helped improve the paper. I thank Petri Böckerman, Kari Heimonen, Kaisa Kotakorpi, Jani‐Petri Laamanen, Jukka Pirttilä, Matti Sarvimäki, Ville Seppälä, Tuomo Virkola, and the participants of the IIPF congress in Tampere and the ECINEQ conference in Paris and seminar participants in Helsinki, Jyväskylä, and Pori for helpful comments and discussions. Financial support from the Finnish Cultural Foundation (grant number 00170305) is gratefully acknowledged. Note

Keywords

happiness
life satisfaction
macroeconomic crises
recession
subjective well-being

Publication forum classification

Publication forum level 1

ASJC Scopus subject areas

Economics and Econometrics

Access to Document

10.1111/roiw.12551Licence: CC BY-NC-ND

roiw.12551Final published version, 164 KBLicence: CC BY-NC-ND

https://urn.fi/URN:NBN:fi:tuni-202110277867Licence: CC BY-NC-ND

Cite this

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title = "The Lasting Well-Being Effects of Early Adulthood Macroeconomic Crises",

abstract = "This paper studies the effects of macroeconomic crises experienced in early adulthood on subjective well-being (SWB) later in life. Using repeated cross-sectional survey data of over 100,000 individuals from 38 countries around the world combined with historical data on macroeconomic circumstances, I find that having experienced a macroeconomic crisis at ages 18–25 is detrimental to SWB. This result is in line with earlier literature that focuses on other individual-level outcomes. However, the analysis presented in this paper reveals that outcomes related to individual{\textquoteright}s earnings, employment status, family life, and religion cannot fully explain the lasting effect of macroeconomic crises on well-being. Results on heterogeneous responses show that the negative effect is largest for females and for individuals with low educational attainment.",

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author = "Matti Hovi",

note = "Funding Information: : I would like to thank the editor Conchita D{\textquoteright}Ambrosio and two anonymous referees for their comments, which helped improve the paper. I thank Petri B{\"o}ckerman, Kari Heimonen, Kaisa Kotakorpi, Jani‐Petri Laamanen, Jukka Pirttil{\"a}, Matti Sarvim{\"a}ki, Ville Sepp{\"a}l{\"a}, Tuomo Virkola, and the participants of the IIPF congress in Tampere and the ECINEQ conference in Paris and seminar participants in Helsinki, Jyv{\"a}skyl{\"a}, and Pori for helpful comments and discussions. Financial support from the Finnish Cultural Foundation (grant number 00170305) is gratefully acknowledged. Note Publisher Copyright: {\textcopyright} 2021 The Authors. Review of Income and Wealth published by John Wiley \& Sons Ltd on behalf of International Association for Research in Income and Wealth",

year = "2023",

doi = "10.1111/roiw.12551",

language = "English",

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AU - Hovi, Matti

N1 - Funding Information: : I would like to thank the editor Conchita D’Ambrosio and two anonymous referees for their comments, which helped improve the paper. I thank Petri Böckerman, Kari Heimonen, Kaisa Kotakorpi, Jani‐Petri Laamanen, Jukka Pirttilä, Matti Sarvimäki, Ville Seppälä, Tuomo Virkola, and the participants of the IIPF congress in Tampere and the ECINEQ conference in Paris and seminar participants in Helsinki, Jyväskylä, and Pori for helpful comments and discussions. Financial support from the Finnish Cultural Foundation (grant number 00170305) is gratefully acknowledged. Note Publisher Copyright: © 2021 The Authors. Review of Income and Wealth published by John Wiley & Sons Ltd on behalf of International Association for Research in Income and Wealth

PY - 2023

Y1 - 2023

N2 - This paper studies the effects of macroeconomic crises experienced in early adulthood on subjective well-being (SWB) later in life. Using repeated cross-sectional survey data of over 100,000 individuals from 38 countries around the world combined with historical data on macroeconomic circumstances, I find that having experienced a macroeconomic crisis at ages 18–25 is detrimental to SWB. This result is in line with earlier literature that focuses on other individual-level outcomes. However, the analysis presented in this paper reveals that outcomes related to individual’s earnings, employment status, family life, and religion cannot fully explain the lasting effect of macroeconomic crises on well-being. Results on heterogeneous responses show that the negative effect is largest for females and for individuals with low educational attainment.

AB - This paper studies the effects of macroeconomic crises experienced in early adulthood on subjective well-being (SWB) later in life. Using repeated cross-sectional survey data of over 100,000 individuals from 38 countries around the world combined with historical data on macroeconomic circumstances, I find that having experienced a macroeconomic crisis at ages 18–25 is detrimental to SWB. This result is in line with earlier literature that focuses on other individual-level outcomes. However, the analysis presented in this paper reveals that outcomes related to individual’s earnings, employment status, family life, and religion cannot fully explain the lasting effect of macroeconomic crises on well-being. Results on heterogeneous responses show that the negative effect is largest for females and for individuals with low educational attainment.

KW - happiness

KW - life satisfaction

KW - macroeconomic crises

KW - recession

KW - subjective well-being

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SN - 0034-6586

VL - 69

SP - 76

EP - 99

JO - Review of Income and Wealth

JF - Review of Income and Wealth

IS - 1

ER -

The Lasting Well-Being Effects of Early Adulthood Macroeconomic Crises

Abstract

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Keywords

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ASJC Scopus subject areas

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