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

Kauppatieteet

Tutkimustuotos: Artikkeli › Tieteellinen › vertaisarvioitu

2 Sitaatiot (Scopus)

15 Lataukset (Pure)

Abstrakti

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.

Alkuperäiskieli	Englanti
Sivut	76-99
Julkaisu	REVIEW OF INCOME AND WEALTH
Vuosikerta	69
Numero	1
Varhainen verkossa julkaisun päivämäärä	5 lokak. 2021
DOI - pysyväislinkit	https://doi.org/10.1111/roiw.12551
Tila	Julkaistu - 2023
OKM-julkaisutyyppi	A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Rahoitus

: 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

Julkaisufoorumi-taso

Jufo-taso 1

!!ASJC Scopus subject areas

Economics and Econometrics

Pääsy asiakirjaan

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

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

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

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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.",

keywords = "happiness, life satisfaction, macroeconomic crises, recession, subjective well-being",

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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pages = "76--99",

journal = "REVIEW OF INCOME AND WEALTH",

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TY - JOUR

T1 - The Lasting Well-Being Effects of Early Adulthood Macroeconomic Crises

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

U2 - 10.1111/roiw.12551

DO - 10.1111/roiw.12551

M3 - Article

AN - SCOPUS:85116379497

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

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!!ASJC Scopus subject areas

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