Perceived Financial Impacts of the Great Recession and Well-Being: Do Associations Differ by Age Groups?

• In Event: Aging and the Life Course Section Roundtables
  In Refereed Roundtable (90 minute): 2: Life course Approaches to Mental Health and Well-being

Abstract

This paper examines how perceived financial hardships during the Great Recession are associated with two distinct dimensions of subjective well-being- cognitive well-being (life satisfaction) and affective well-being (emotional states)- and whether these associations vary across age groups and levels of educational attainment. Drawing on developmental and life course perspectives, the study emphasizes the timing of exposure to macroeconomic shocks and the differential vulnerability of individuals at various stages of life. I hypothesize that younger adults were more likely than older adults to experience multiple forms of financial hardship during the recession and that they were more sensitive to these perceived shocks, exhibiting lower life satisfaction and more negative affect. Younger individuals may have been especially vulnerable due to less stable employment trajectories, fewer accumulated assets, and less established family roles, limiting their capacity to buffer economic strain. While prior research documents associations between recession-related hardships-such as job loss and housing instability-and adverse mental health outcomes, evidence regarding age differences remains inconclusive. Building on existing scholarship, this study distinguishes among three domains of perceived recession impact: employment disruption, housing instability, and deteriorating financial standing. By centering individuals’ subjective interpretations of financial strain rather than relying solely on objective indicators, the analysis advances understanding of how macroeconomic crises are internalized and translated into psychological outcomes. In addition, education is examined as a key moderator, given cohort-based differences in educational attainment and its potential protective effects. Together, these analyses identify age- and education-based disparities in vulnerability, offering new insights into how economic crises shape well-being across the life course.

Author

• Elinore Ruth Avni, Boston University