The Lasting Well-being Effects of Early Adulthood Macroeconomic Crises
Hovi, Matti (2020)
This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
This paper studies the effects of macroeconomic crises experienced in early adulthood on subjective well-being 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 to 25 is detrimental to subjective well-being. 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 a 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.