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Economic Stress in the Family and Children's Emotional and Behavioral Problems

Author(s): David T. Takeuchi, David R. Williams and Russell K. Adair


Source: Journal of Marriage and Family, Vol. 53, No. 4 (Nov., 1991), pp. 1031-1041
Published by: National Council on Family Relations
Stable URL: http://www.jstor.org/stable/353006
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DAVID T. TAKEUCHI University of California, Los Angeles

DAVID R. WILLIAMS Yale University*

RUSSELL K. ADAIR Yale University*

Economic Stress in the Family and


Children's Emotional and Behavioral Problems

This study examines the relationship between two Early community surveys consistently demon-
measures of economic stress-welfare status and strated that adults in the lower socioeconomic
perceived financial stress-and children's emo- status (SES) groups had higher levels of psycho-
tional and behavioral problems. Longitudinal logical distress than adults in other SES categories
data from the National Survey of Children are (Dohrenwend and Dohrenwend, 1969; Langer
used to test two hypotheses. The first hypothesisand Michael, 1963; Leighton, Harding, Macklin,
MacMillan, Leighton, 1963; Myers, Lindenthal,
predicts that economic stress will adversely affect
children's emotional and behavioral problems.Pepper, and Ostrander, 1974; Srole, Langer, Mi-
Levels of depressive symptoms, impulsive behav- chael, Opler, and Rennie, 1962). These studies
provided indirect evidence that economic factors
ior, and antisocial behavior are found to be higher
among children who experienced either form can of have pernicious consequences for the mental
economic stress at least once between 1976 and health of adults. Brenner's (1973) ecological
1981 compared to those who were unaffected analyses by of the relationship between economic in-
economic stress. The second hypothesis predicts dicators and measures of mental health found in-
that the presence of economic stress at both data creased rates of suicide, new admissions to psy-
collection points will have a more adverse impact chiatric institutions, and alcohol-related diseases
than economic stress experienced at only one time during periods of economic decline. Despite
point. Results provide only limited support for methodological
the problems with ecological studies
persistence hypothesis. Research is needed to (Marshall and Funch, 1979), Brenner's research
identify the specific processes by which economic provided the impetus for studies on the effects of
stress affects children's well-being. economic variables, particularly unemployment,
on mental health (Boor, 1980; Catalano and
Dooley, 1977; Cohn, 1978; Feather and Barber,
1983; Gore, 1978; Kasl and Cobb, 1979; Oliver
and Pomicter, 1981; Shepherd and Barraclough,
National Research Center on Asian American Mental Health, 1980).
UCLA, Franz Hall, Los Angeles, CA 90024-1563.
Research on the health consequences of chron-
*Department of Sociology, Yale University, P.O. Box 1965, ic stress also suggests that chronic economic fac-
Yale Station, New Haven, CT 06520. tors are a source of ongoing stress (Pearlin, Men-

Journal of Marriage and the Family 53 (November 1991): 1031-1041 1031

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1032 Journal of Marriage and the Family

aghan, Lieberman, and Mullan,


tence 1981).
of economic stress Economic
over time that contri-
butes to children'sstrain,
stress, such as chronic financial emotional andmay behavioraloper-
ate synergistically with problems.
negative life events (Brown
and Harris, 1981; PearlinSome et al.,
limited 1981)
empirical evidenceor place
suggests that the
individual under a social burden
the persistence that
of stress has eventually
more adverse conse-
precipitates emotionalquences on health than does(Williams
problems stress that is tran- and
House, 1991). Stress may deplete
sistory in nature. House andexisting
his colleagues (1986) social
support resources, erode self-concept
demonstrate the importance of measuring and
stress at mas-
tery, and minimize options
more than onefor coping
time. Their behavior
study, which collected
occupational stress data
(Kessler, Price, and Wortman, at two points
1985; in time,
Mirowsky
and Ross, 1986; Pearlinfound
and Lieberman,
that men who had moderate-to-high1979).
levels
The association between economic stress and of stress at both times had a mortality rate three
children's emotional problems has received timesin- greater than those who reported a low level
of stress at one point, regardless of their stress
creased attention in recent years. Families under-
going economic pressures are prone to critical level at the other time (House, Strecher, Metzner,
events such as divorce, unemployment, or child and Robbins, 1986).
abuse (Elder, Nguyen, and Caspi, 1985; Hether- In contrast to studies that view poverty status
ington, 1979; Pelton, 1981). The economic strains
as static, longitudinal studies show that poverty is
and surrounding events help to shape the well- a dynamic condition, with families entering and
exiting poverty every year. Levy (1975), for exam-
being of the parent, which may in turn influence
ple, documented that less than half of the poor
parental attitudes toward children and the quality
of parent-child interactions (Kohn, 1969; Sam- (approximately 10 million people) between 1967
eroff, Seifer, and Zax, 1982). The emotional and 1973 could be designated as permanently
health of children, especially younger ones, is af- poor. Most new people in poverty are poor for a
fected by these childrearing practices. Families year or two (Bane and Ellwood, 1983). At any
with limited resources frequently live in neighbor-given point in time, the persistently poor-
hoods with adverse physical and social environ- families in poverty for at least eight years at a
ments characterized by such features as crime, stretch-is estimated to range from 40% to 60%
shabby housing, and low-quality schools. Among of the total poverty population. Although this is a
adolescents, poor environmental conditions oftensizable number, it does emphasize the hetero-
lead to social isolation from important role geneity among the poor (see Miller, 1964). Few
models and social support systems and can resultstudies have actually examined this diversity
in emotional and behavioral problems (Wilson, among the poor.
1987). Changes in poverty status over time may have
Although there is general consensus that consequences for one's health. The duration of
poverty is a risk factor for emotional and be- time spent in poverty may determine the severity
havioral problems among children (Comer, 1985; of the health consequences of living in poverty.
Institute of Medicine, 1989), the field has not Some evidence suggests that children who live in
moved much beyond this general finding (Gould, poverty families for an extended period are more
Wunsch-Hitzig, and Dohrenwend, 1981; Hagger- at risk for emotional and behavioral problems
ty, 1988). One reason is that most studies use than children in families who enter poverty for a
cross-sectional data that make it difficult to deter- short time. Eisenberg (1979) analyzed the longi-
mine whether poverty conditions "cause" mental tudinal relationship between welfare status and
health problems or whether families that have children's mental health. She collected data on a
children with emotional problems drift into pov- sample of families receiving welfare benefits in
erty conditions. Kasl (1983), for example, cites Manhattan and conducted a follow-up study five
numerous examples of "well-established" find- years later. A comparison group of nonwelfare
ings from cross-sectional studies that were dis- families was also included. In the analysis of the
confirmed in prospective investigations. Another Time 1 data, children from welfare families did
reason is that studies on SES and children's be- not have more identified problems than children
havior make it difficult to assess whether it is the
in nonwelfare families. While welfare children
mere existence of economic stress or the persis-
were identified as more dependent or delinquent,

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Economic Stress and Children's Problems 1033

The second
nonwelfare children had higher measure used
levels of inanxiety,
this study is
perceived
compulsivity, and conflict with financial stress. In contrast
parents and sib- to the
lings. After five years, children from
welfare status measure, whichwelfare
focuses on persons
families had higher ratesat of
the bottom of the SES strata,
identified perceived stress
problem
includes people
behavior. Among the welfare at other children
sample, income levels whoin see
families that exited welfare showed less behavioral themselves unable to fulfill their economic
difficulties than children in long-term welfare responsibilities adequately. This includes families
families. This study suggests that long-term in the middle class who do not qualify for many
welfare parents are under economic stress that government programs but find it difficult to make
severely affects their mental and physical health, ends meet. The consequences of stress may be
marriage, and parental behavior. These factors, in dependent on the extent to which a potential
turn, may affect the behavior and emotional stressor is perceived as aversive (Lazarus and
health of their children. Folkman, 1984). The objective financial condition
This study extends Eisenberg's analyses by us- may not be as important as the subjective percep-
ing a national household sample of children and tion of economic stress. Perceived financial stress
their families. We investigate the impact of pover- has been used as a predictor of adult psychologic-
ty and perceived financial stress, two related but al distress (see, for example, Pearlin et al., 1981),
distinct facets of economic stress, on the mental but the association with children's mental health
health of children. Poverty is an objective assess- has not received sustained research inquiry. It
ment of economic stress that takes into account seems reasonable that perceived stress would be
the demands placed on a family's financial re-related to children's mental health, since adults
sources. Perceived stress, on the other hand, is a
under perceived financial stress are more likely to
subjective measure of economic stress. Usingreport symptoms of depression or distress, which
longitudinal data from the National Survey of may, in turn, affect the emotional health of their
Children (NSC), we examine whether the persis- children.
tence of economic stress is related to children's This study tests two specific hypotheses:
mental health. 1. Economic stress adversely affects children's
The receipt of Aid to Families with Dependent emotional and behavioral problems. We will
Children (AFDC), otherwise known as welfare, is examine the extent to which poverty and
our measure of poverty. Almost by definition, perceived financial stress have deleterious ef-
AFDC recipients have less than a minimum fects on children's problems.
amount of the economic resources that are ade- 2. The persistence of economic stress has a
quate to meet the daily demands of living. In the greater effect on children's emotional and
United States, the poverty threshold is created by behavioral problems than does stress that is
multiplying by three the minimum amount neces- transistory in nature.
sary to obtain a low-cost nutritious diet-a for-
mula based on the assumption that food repre- METHODS
sents one-third of the expenditures of a low-in-
come family (Norris, 1984). In more than half of This article uses data from the NSC, a national
all states, the total monthly AFDC benefits are longitudinal study that collected physical and
mental health data on children. The target popu-
less than half of the figure at the official poverty
line (Burwell and Rymer, 1987). While not all lation for the NSC 1976 study was all children,
poor people receive welfare payments, welfare re- 7-11 years of age, living in households in the 48
cipients represent a socially defined category of contiguous states. The sampling was designed to
people in economic need. The receipt of welfare yield approximately 500 interviews with black
may also affect the nature of interaction with children and 1,500 with nonblack children. A
others. The general public and welfare recipients total of 2,193 households containing one or more
themselves attach a stigma to the receipt of wel- eligible children was located and interviews were
fare (Bennett, 1987; Coser, 1965). In addition, completed with 2,279 children in 1,747 house-
welfare programs may create dependency and re- holds, representing an 80% response rate. The
duced levels of social support in welfare families eligible child and the adult who was most capable
(Comer and Hill, 1985). of providing information about the child, usually

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1034 Journal of Marriage and the Family

The NSC asked If


the mother, were interviewed. parents whether their household
a selected family
income waschildren,
had three or more eligible adequate to meet theirtwo needs.were
Similar
to welfare
selected at random to be status, this measure
interviewed. A is also divided into
follow-up
study was conducted in four1981.
categories based on perceivedof
Because stress at Time 1
limited
and not
resources, the NSC could Time 2. For both measures of economic
reinterview the en-
stress, wethe
tire original sample. Since are unable to determine whether
principal investi-
families were underin
gators were primarily interested stress for all five years
marital or in-
disrup-
termittently
tion, they constructed the during the five-year
follow-up sample period.
to Wein-
clude a high proportion recognize
of that the term "persistence"
children from is not
high-en-
conflict families. Completed tirely accurate, but we use it as a convenient
interviews were con- ob-
tained from 1,377 children struct toin represent
1,047 the long-term
families, exposurerep-to
resenting 78% of the families. stress. Details of the data
collection are described Three measures of parental
elsewhere assessment of be-
(Furstenberg,
Nord, Peterson, and Zill, havior, 1983).
adapted from the Child Behavior Check-
In this study, we imposed list (Achenbach
three and Edelbrock,
criteria 1981), are the in-
for
cluding a case in the analyses. outcome variables: First,
depressive symptoms
the and anti-
analyses
are limited to whites and socialblacks;
and impulsive the
behavior.ethnic
The items used in
groups
included under the "other" constructing these scales are included
category in the Ap-
(unweighted
n = 49) were excluded from pendix. Following
thePeterson and Zill (1986),
analyses. we
Second,
we included only casesconstructed where scale the
scores for the dependent
child's vari-
parents
or stepparents were interviewed. ables. The scale scores indicate the number of
Limiting the
selection to parents provides characteristics an(from 0 to 6) that the parent re-
unambiguous ex-
amination of the impact portedof as describing
parental the child.economic
While we are un-
stress on children's emotional sure about the validity
health. of these Third,
shortened scales, we
included only those cases the Cronbach's
where alphathe
reliability
same scores adult
for each
respondent was interviewed scale wereat adequate:
both antisocial
time (.73),periods.
depressive
Since this study reliessymptoms on an (.75), and impulsive behavior
assessment of (.70).
the
child's behavior and emotional state at both time The exact items measuring emotional and behav-
periods, use of the same respondent increases the ioral problems at Time 2 were not used at Time 1,
reliability of the assessments. These inclusion but similar items measuring the same constructs
were used. Since previous emotional and behav-
criteria result in a final sample of 1,270 children.
ioral problems may be important predictors of
Measures
current problems, scales from these Time 1 items
were used as indicators of Time 1 status.
As indicated earlier, two measures of economic The child's age, gender, and race are the socio-
stress are used in this study. At each time period,
demographic controls used in the analysis. In ad-
respondents could be classified as on welfare or dition, parental marital status at Time 1 and Time
not on welfare, on the basis of their sources of in- 2 is also included as a control variable because
come.' Respondents were considered to be on previous research demonstrates that it is related to
welfare if they reported that AFDC or general children's emotional and behavioral problems
assistance was their main source of income.2 All (Peterson and Zill, 1986).
respondents are assigned to one of four welfare
categories based on the combination of their
welfare status in 1976 (Time 1) and 1981 (Time 2): Data Analysis
(a) persistence is defined as welfare status at Time In all analyses, the data are weighted to com-
1 and Time 2; (b) entry is nonwelfare status at pensate for differential probabilities of selection
Time 1 and welfare status at Time 2; (c) exit is and to make the sample comparable to the na-
welfare at Time 1 and nonwelfare at Time 2; and tional population of children aged 12 to 16 in
(d) nonwelfare is defined as not receiving welfare 1981. Respondents with missing data on any of
at Times 1 and 2. the variables in this particular study are excluded
The second indicator of economic stress is from the analyses. Simple descriptive statistics are
perceived ability to meet financial obligations.
used to present the means and standard deviations

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Economic Stress and Children's Problems 1035

TABLE 1. SAMPLE CHARACTERISTICS


not welfare-dependent at either time.
UNWEIGHTED f'S AND WEIGHTED PERCENTAGES
comparison is based on perceived finan
Weighted as the major independent variable. The
Variable n Percentage
of analyses compares the persistence o
Child's gender status and perceived financial status w
Male 631 51.3
Female 639 48.7 stress categories. The analyses identify
Child's age in 1976 that welfare status and perceived stress
6-9 years old 753 57.5 plaining children's behavior at Time 2
10-12 years old 517 42.5 dent of past problems.
Parental marital status
Stably married 870 74.6
Stably unmarried 215 12.8 FINDINGS
Other 185 12.6

Child's race Sample characteristics for children and their fami-


White 965 84.4
Black 305 15.6
lies are displayed in Table 1. Most of the children
were white (84%) and came from families where
Welfare status
Nonwelfare in 1976 and 1981 1,017 84.0 the parents had been married at both time periods
Welfare in 1981 (entered) 66 5.4 (75%). Approximately 13% of the children came
Welfare in 1976 (exited) 62 4.3 from families where the parent was not married at
Welfare at 1971 and 1986
(persistence) 125 6.3 both measurement times, and 13% of the children
Parent's perceived stress witnessed some change in the marital status of the
No perceived stress in 1976 parents. The average age of the children was 9.1
and 1981 678 55.8
Perceived stress in 1981
years (not shown in the table).
(entered) 145 10.6 Sixteen percent of the families were on welfare
Perceived stress in 1976 (exited) 221 17.0 during at least one of the time periods, with 6% of
Perceived stress in 1976 and
1981 (persistence) 226 16.5
the families on welfare at both time periods.
Slightly more families entered the welfare status
(5%) than exited (4%). The distribution of par-
ents who perceived financial stress shows a differ-
of the outcome variables. Tobit analyses, rather
ent pattern. Slightly less than half of the parents
than ordinary-least-squares regression, reportedare problems
usedinto making ends meet (44%).
test this study's hypotheses because Aboutofanthe equallimited
percentage of parents (17%) re-
range of the dependent variables ported (Maddala,
financial 1983).
stress at two points in time and
The first hypothesis is tested byexited using only stress
the financial two category. Eleven percent
categories of economic stress. Respondents re-
of the parents perceived financial stress only at
ceiving welfare at either of theTime data
2. collection
points are compared with respondents whoiswere
Since there a possibility that welfare status

TABLE 2. MEANS AND STANDARD DEVIATIONS OF EMOTIONAL AND BEHAVIORAL PROBLEMS FOR
Two MEASURES OF ECONOMIC STRESS

Type of Symptoms
Impulsive Antisocial Depressive
Variable Mean SD Mean SD Mean SD
Welfare status
Nonwelfare 2.15 1.78 1.14* 1.50 1.19 1.58
Entered 2.29 1.71 1.46* 1.52 1.33 1.36
Exited 2.38 1.64 1.45* 1.65 1.34 1.47
Persistent 2.76 1.51 2.27 1.54 1.77 1.51
Perceived financial stress
No stress 2.12 1.78 1.06* 1.47 1.06* 1.47
Entered 2.24 1.70 1.28* 1.42 1.33* 1.45
Exited 2.35 1.63 1.45 1.62 1.52 1.70
Persistent 2.36 1.81 1.63 1.80 1.50 1.74

*Significantly different from persistent g

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1036 Journal of Marriage and the Family

and perceived financialarate


stress measure
tobit regression analyses thatthe same
assess the rela-
concept, we examined tionship
the between each indicatorbetween
association of economic
stress and impulsive
both variables. These analyses (not behavior,
shown) depressive symp-
reveal
toms, and antisocial overlap
that, while there is considerable behavior. These (gamma
analyses use
a dichotomous
= .63, p < .04), sufficient measure of stress.exist
differences Compared be-to
children whose
tween the variables to consider families were
them as on welfarediffer-
two at least
ent concepts here. For once during the two
example, onlytime periods,
55%nonwelfare
of the
families that were on welfare in 1976 and 1981 children had lower scores on impulsive behavior
perceived themselves under financial stress at both (-.43, p < .05), antisocial behavior (-.68, p <
time periods. .01), and depressive symptoms (-.57, p < .05).
Table 2 presents the means and standard devia- The analyses demonstrate the significance of wel-
tions of depressive symptoms and antisocial and fare status in predicting children's problems at
impulsive behavior. Children from families persis- Time 2 independent of problems at Time 1.
tently on welfare have higher average levels of de- Similar tobit analyses were conducted with per-
pressive symptoms and antisocial and impulsive ceived financial stress as the major independent
behavior than all the other groups, but significant variable (lower panel of Table 3). Perceived finan-
differences exist only for antisocial behavior.cial stress, like welfare status, was strongly linked
Children not on welfare and children whose fami- to all three outcome variables. Compared to chil-
lies enter and exit welfare score, on the average, dren whose families perceived financial stress at
significantly lower on the antisocial behavior mea- least once during the two time periods, children
sure than the children whose families were on wel- whose families were unaffected by financial stress
fare at both time periods. A slightly different pat- at Time 1 or Time 2 had lower levels of impulsive
tern exists for perceived financial stress. Children behavior (-.32, p < .01), antisocial behavior
from families under persistent financial stress (-.36, p < .05), and depressive symptoms (-.73, p
have significantly higher mean scores on anti- < .001).
social behavior and depressive symptoms than The next series of analyses tests the second hy-
children whose families were under no financial pothesis: persistence of stress has more severe
stress or who perceived financial difficulties onlyconsequences than stress that is temporary in
at Time 2. nature. Table 4 displays the relationship between
We now examine whether these zero-order as- welfare status and children's emotional and be-
sociations remain intact when we adjust for po- havioral problems. Welfare status is now coded as
tentially confounding sociodemographic controls a series of dummy variables: (a) persistence of
in multivariate analyses. Do children in families welfare; (b) entry into welfare; (c) exit from wel-
under economic stress have more emotional and fare; and (d) never on welfare. The focus here is
behavior problems than children in nonstressed on the difference between long-term dependence
on welfare and the other welfare categories. Ac-
families? Table 3 presents the results of three sep-

TABLE 3. UNSTANDARDIZED TOBIT COEFFICIENTS FOR EXAMINING THE RELATIONSHIP BETWEEN


ECONOMIC STRESS IN 1976 AND 1981 AND CHILDREN'S EMOTIONAL AND BEHAVIORAL PROBLEMS IN 1981

Variable Impulsive Antisocial Depression


Welfare status
Never on welfare -.43* -.68** -.57*
Received welfare in 1976
and 1981 (omitted)
Maximum likelihood estimate -2386.2 -1984.6 -2004.6

Perceived financial stress


No perceived stress -.33** -.36* -.73***
Perceived stress in 1976
and 1981 (omitted)
Maximum likelihood estimate -2388.5 -1985.5 -1998.4

Note: All analyses are adjusted for the sociodemograph


status) and problems at Time 1. t tests were used to det
*p < .05. **p <? .01. ***p < .001.

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Economic Stress and Children's Problems 1037

TABLE 4. UNSTANDARDIZED TOBIT COEFFICIENTS FOR EXAMINING THE RELATIONSHIP BETWEEN


WELFARE STATUS AND CHILDREN'S EMOTIONAL AND BEHAVIORAL PROBLEMS

Variable Impulsive Antisocial Depression


Welfare status
Exited -.76* -.98* -.51
Entered -.42 -.68 -.52
Not on welfare -.81** -1.22*** -.91
Persistent (omitted)
Maximum likelihood estimate -2384.5 -1980.8 -2003.2

Note: Controlled for sociodemographic variables (child's


problems at Time 1. t tests were used to determine statisti
*p < .05. **p < .01. ***p < .001.

cordingly, persistence of welfare status is the com-


tent financial stress was not statistically different
parison group in these analyses. Children whofrom the exited and entered stress categories.
were never on welfare have lower scores on impul-Thus, unlike the findings for the objective
sive behavior (-.81, p < .01), antisocial behavior
measure of economic stress, these results indicate
(-1.22, p <.. .001), and depressive symptomsthat children who live in households that ex-
(-.91, p < .05) than those who experience welfare perience subjective stress at one data collection
at both times. In addition, for impulsive and anti-
point do not differ from those thatperceive finan-
social behavior, children in households that exited
cial stress at both time periods.
welfare only (welfare in 1976) also scored lower A final set of analyses assesses the relative
than those persistently on welfare. In all of the de-
contribution of objective and subjective indica-
pendent variables, entry into welfare was consis- tors of stress in predicting the emotional and be-
tently lower than persistence on welfare, but none havioral problems of children. The dummy vari-
of the differences reached statistical significance.
ables for both welfare status and perceived finan-
Thus, the well-being of children who were persis- cial stress were simultaneously entered in the same
tently dependent on welfare is worse than that of tobit model (analyses not shown here). The basic
former welfare recipients, but does not differpattern of results found in Tables 3 and 4 remains
from that of those who are newly on welfare. intact. Thus, welfare status and perceived stress
Table 5 shows the relationship between theare making independent contributions in explain-
outcome variables at Time 2 and perceived finan-
ing children's problems.
cial stress, adjusted for the sociodemographic
variables and Time 1 status. Persistence of finan-
DIscussIoN
cial stress was the comparison group for these
analyses. As expected, children from families The first hypothesis predicted that economic
under financial stress at both time periods had stress will adversely affect children's emotiona
higher levels of depressive symptoms and of anti- and behavioral problems. Welfare status and per
social and impulsive behavior than children whose ceived financial stress had a detrimental effect on
families were not under stress. However, persis- all three outcome variables. The second hypothe

TABLE 5. UNSTANDARDIZED TOBIT COEFFICIENTS FOR EXAMINING THE RELATIONSHIP BETWEEN


PERCEIVED FINANCIAL STRESS AND CHILDREN'S EMOTIONAL AND BEHAVIORAL PROBLEMS

Variable Impulsive Antisocial Depression


Perceived financial stress
Exited -.12 -.02 -.28
Entered -.22 -.33 -.39
No stress -.44** -.43* -.89***
Persistent (omitted)
Maximum likelihood estimate -2388.3 -1985.7 -1952.8
Note: Controlled for sociodemographic variables (child's gender,
problems at Time 1. t tests were used to determine statistical signifi
*p < .05. **p < .01. ***p < .001.

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1038 Journal of Marriage and the Family

sis predicted that economic stress


ments within at two
the family. points
These problems may in
time will have a greaterhave
effect on
a differential children's
impact emo-
related to a child's de-
tional and behavior problems than economic velopment and age. In early childhood, parental
stress that is temporary in nature. The data lend discord may lead to a child's isolation and
some support for House and his colleagues' con- withdrawal from family routines. Family conflict,
tention that stress at two points in time has more including but not limited to divorce or separation,
severe consequences for health than stress at only is a strong predictor of problems in adolescence,
one point in time (House et al., 1986). The direc- especially conduct disorders (Rutter, 1980). In
tion of the associations supported the persistence adolescence, peer groups also play a formidable
hypothesis, but statistically significant findings role in explaining children's problems. Adoles-
were found only for the objective stress measure. cents who lack supervision or who are isolated
Children whose families received welfare at two from their parents may spend more time with de-
points in time had more behavioral problems than linquent peers, which may result in behavioral
children whose families no longer received welfare
problems or illegal activity (Friday and Hage,
payments at Time 2. A similar association was not 1976). Future research is needed to examine this
found for depressive symptoms. age patterning of the influence of economic fac-
Children from families under perceived finan- tors on children's behavior.
cial stress at two time periods did not differ from Children and youth under 18 comprise the
children whose families were under financial largest age group living in poverty conditions.
stress at only one point in time. This suggests that recent years of economic growth, the
Despite
even the transitory perception of financial stress
number of poor children has risen by 36% since
can have an adverse impact on children's emo-
1970 (U.S. House of Representatives, 1989).
tions and behavior, most markedly for depressive
Poverty not only has severe economic conse-
symptoms. In the NSC, the parent reports quences
both for children and their families, but it can
the level of perceived financial stress and the also have pernicious effects on children's well-
child's depressive symptoms. One potential being, especially if children do not escape condi-
limitation is linked to the subjective component of tions of poverty. While we have demonstrated
our measure. As indicated earlier, financial stress that a family's position in the socioeconomic sys-
can have an effect on parental mental health. Par- tem can shape the emotions and behavior of chil-
ental depression may color the perception of fi- dren, research is needed to delineate the specific
nancial status and parents may report their chil- mechanisms that link social structure and chil-
dren's emotional state as similar to their own
dren's problems. For example, children from
(Angel and Worobey, 1988). Parental depression
families suffering severe economic hardships must
is also strongly linked to children's affective
often attend schools that have inadequate physi-
states: 10% to 40% of the immediate relatives of cal facilities, use outdated books, and are under-
affectively disordered individuals also develop the
staffed. Over the long term, compared to their
disorder (Office of Technological Assessment, middle-class peers, these children may not learn as
1986). much, become bored with school, and be less like-
In this study we have used "persistence" of ly to see education as a vehicle for social mobility
welfare and perceived financial stress to describe (Ogbu, 1978). Childrearing practices, access to
measures of economic stress for only two of the social networks and role models, residence in poor
five years. The findings suggest that, at least for neighborhoods, family social environments, fam-
welfare status, measuring stress at two points in ily structure, and daily problems in making ends
time provides a more accurate picture of how meet may be possible linkages between larger
family stressors can affect children's behaviors social structures and the health status of children.
and moods than does measuring at one point in Research is needed to evaluate how these variables
time. However, for further testing of the persis- operate together and to document the relative im-
tence hypothesis, future studies must collect data portance of each as a determinant of children's
at more frequent intervals to capture the duration well-being. More systematic efforts to identify
of economic stressors. these intervening mechanisms increase our under-
Economic factors can create conflicts between standing of the process by which large-scale social
parents that may result in open hostility and argu-structures shape individual and group behavior

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Economic Stress and Children's Problems 1039

(Williams, 1990). Bennett, Misha. 1987. "Afro-American women's


poverty and mental health: A social essay." Women
and Health 12: 213-228.
NOTES Boor, M. 1980. "Relationships between unemploy-
ment rates and suicide rates in eight countries, 1962-
This research was supported in part by the National 1976." Psychological Reports 47: 1095-1101.
Research Center on Asian American Mental Health
Brenner, Harvey. 1973. Mental Illness and the Econ-
at UCLA (NIMH No. MH44331) and an NIMH omy. Cambridge, MA: Harvard University Press.
research grant (No. R03MH45258). These data Brown, George W., and Tirril Harris. 1978. Social Ori-
were made available through the Yale University gins of Depression. New York: Free Press.
Social Science Library and the Inter-University Burwell, Brian O., and Marilyn P. Rymer. 1987.
Consortium for Political and Social Research at the
"Trends in Medicaid eligibility: 1975-1985." Health
University of Michigan (ICPSR #8670). We thank Affairs 6: 30-45.
James Peterson at Child Trends, Incorporated, for Catalano, Ralph, and David Dooley. 1977. "Economic
his assistance with the data. Two anonymous re- predictors of depressed mood and stressful life
viewers made helpful suggestions for the revision of events in a metropolitan community." Journal of
this article. Address correspondence to David T. Health and Social Behavior 18: 292-307.
Takeuchi.
Cohn, Richard M. 1978. "The effects of employment
1. A reviewer notes that a welfare dichotomy may re- status change on self attitudes." Social Psychology
sult in a misclassification of children, since families 41: 81-93.
Comer, James P. 1985. "The Yale-New Haven pri-
moving just above or below the dichotomization
point may experience very little change in economic mary prevention project: A follow-up study." Jour-
fortunes. While this assessment is accurate, the wel- nal of the American Academy of Child Psychiatry
fare status dichotomy is nonetheless useful because 24: 154-160.
it reflects a readily identifiable, socially definedComer, James, and Hope Hill. 1985. "Social policy and
category of people in economic need. In addition, the mental health of black children." Journal of the
having multiple welfare status categories would re- American Academy of Child Psychiatry 24: 175-
sult in analyses that would be unwieldy and detract 181.
from our assessment of change in status. For exam- Coser, Lewis A. 1965. "The sociology of poverty."
ple, adding a borderline welfare status category Social Problems 13: 140-148.
would result in nine different categories of welfareDohrenwend, Bruce P., and Barbara S. Dohrenwend.
status change at Time 2. 1969. Social Status and Psychological Disorder: A
Causal Inquire. New York: Wiley.
2. The question related to source of income differed at
Eisenberg, Jeanne G. 1979. "The welfare children:
Time 1 and Time 2. Respondents were considered
An overview of longitudinal findings." Pp. 146-
on welfare at Time 1 if they reported income from
156, 177-181 in Roberta Simmons (ed.), Research in
the following sources: (a) Aid to Families with De-
Community Mental Health (Vol. 1). Greenwich,
pendent Children, or welfare, and (b) general assis- CT: JAI Press.
tance or aid to the disabled, blind, or old. At Time
Elder, Glen H., T. V. Nguyen, and Avshalom Caspi.
2, a single question was used to determine welfare
1985. "Linking family hardship to children's lives."
status: "Within the last year, have you received any
Child Development 56: 361-375.
income from welfare or other public assistance?"
Feather, Norman T., and J. G. Barber. 1983. "De-
We decided to keep the welfare inclusion categories
pressive reactions and unemployment." Journal of
consistent for Time 1 and Time 2, and therefore,
Abnormal of Psychology 92: 185-195.
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Friday, P. C., and J. Hage. 1976. "Youth crime in post-
gory b (general assistance or aid to the disabled,
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Economic Stress and Children's Problems 1041

APPENDIX

BEHAVIOR PROBLEM INDEX: SUBSCALE ITEMS FROM


TIME 2 OF THE NSC (1981)
Antisocial
Cheats or tells lies
Bullies, or is cruel or mean to others
Is disobedient at home
Is disobedient at school
Does not seem to feel sorry after (he/she) misbehaves
Hangs around with kids who get into trouble
Depressed/Withdrawn
Feels or complains that no one loves (him/her)
Feels worthless or inferior
Is not liked by other children
Is unhappy, sad, or depressed
Is withdrawn, does not get involved with others
Feels others are out to get (him/her)
Hyperactive/Impulsive
Is too fearful or anxious
Has difficulty concentrating, cannot pay attention for
long
Is easily confused, seems to be in a fog
Is impulsive, or acts without thinking
Has a lot of difficulty getting (his/her) mind off
certain thoughts, has obsessions
Is stubborn, sullen, or irritable

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