Events at CERGE-EI

Prof. Andrew Clark

Paris School of Economics, France

Authors: Marta Barazzetta, Andrew Clark, and Conchita D’Ambrosio

Abstract: We here consider the cognitive and non-cognitive consequences on young adults of growing up with a mother who reported experiencing major financial problems. We use data from the Avon Longitudinal Study of Parents and Children to show that mothers’ financial problems are associated with worse cognitive and non-cognitive outcomes in adolescence, even after controlling for both income and a set of standard variables, and with an effect that is mostly larger in size than that of income. We broadly find little difference between financial problems at earlier and later child ages.