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Economic crises can be associated with chronic stress for many people which can produce both adaptive and dysfunctional psychological responses, such as depression [ 14 ].

Greater vulnerability to the mental health effects of economic crises exists among those with previous mental illness, the unemployed, migrants, ethnic minorities, children, young people, and the elderly [ 9 , 11 , 15 ]. Increased unemployment is associated with more child abuse and neglect [ 18 ], an increased incidence of injuries [ 17 ], and worse child and adolescent mental health [ 16 , 17 ], but also lower obesity rates, especially for young children and adolescents [ 2 ].

Similarly, US studies examining the effect of aggregate unemployment rates versus anticipated job losses on infant health arrive at opposite conclusions. Babies conceived during periods of high unemployment rates appear to have better health outcomes specifically, a reduced incidence of low and very low birth weight, fewer congenital malformations, lower postneonatal mortality [ 19 , 20 ], yet the announcement of impending job losses appears to lead to a temporary decline in birth weight [ 21 ].

In California, the perception of job loss that was not actually realized was linked to increased rates of low birthweight [ 22 ]. This evidence that anticipated macroeconomic outcomes affect child health points to an important mechanism through which economic downturns may affect population health—economic fear and stress.

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Even if households do not personally experience job loss, they may experience an increase in job insecurity and stress when aggregate unemployment rises [ 23 , 24 ]. Consistent with this, Golberstein et al. At the same time, the worsening economic conditions that families anticipate during economic downturns are often highly correlated with the real deterioration in economic conditions they experience.

Thus, economic recessions may also be linked to poorer child mental health through a range of other mechanisms including: job loss, job instability, low wages, poor work quality, residential moves, diminished parental investments, increased parental stress and lower parenting quality, and marital tension, as well as subjective perceptions of economic hardship [ 7 , 25 , 26 ].

Recession may also affect children through changes at the community level including reduced expenditure on health and social services, higher unemployment and underemployment rates, aggregate household poverty, and a concentration of disadvantage and negative peer influence [ 25 ].

As was true across the globe, the onset of the Great Recession in late resulted in a rapid rise in economic uncertainty and loss of consumer confidence among Australian families [ 27 , 28 ]. However, Australia is unique in avoiding the recession occurring elsewhere with GDP growth remaining strong and unemployment rates rising only two percentage points.

The widely anticipated and severe economic downturn in large part did not materialize. The stimulus package had three components—a tax bonus for working Australians, a back to school bonus and a single income family bonus for families with children.

Cash payments targeted at low income families were effective in stimulating consumption among low-income families with children. Little is known about the effects of the Great Recession on child and adolescent mental health [ 6 , 9 , 25 , 30 ].

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This is important because mental health problems often onset in childhood, are common and burdensome, and left untreated can negatively impact on health, social and economic outcomes into adulthood [ 31 , 32 ]. Although vulnerable adult sub-populations are more negatively affected by actual declines in economic conditions, amongst children the effects may be more universal.

In the United States, for example, Golberstein et al. Page et al. There is further evidence that adolescent health may be worse in economic downturns. Job losses stemming from mass layoffs, for example, result in increased adolescent suicidality [ 33 ] and more young people seeking emergency psychiatric care [ 34 ].

Research highlights

In contrast, in cross-national analyses, Pfoertner et al. Those studies that focus on community perceptions of economic conditions during recessions indicate that sentiment matters as much for child and adolescent outcomes as do actual conditions; particularly for boys.

Schneider and colleagues [ 36 ] show links between community perceptions of the economic environment during the Great Recession in the United States and child behaviors, high frequency spanking [ 37 ], and risks for maternal child abuse and neglect [ 38 ].


Schneider et al. Finally, there are a handful of studies that have examined the effect of the Great Recession on population health in Australia. One study found poorer psychological functioning of older adults who reported to be impacted by the Great Recession [ 39 ] with another finding little evidence of impact on mental health problems in adults [ 40 ].

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In their study of youth pooling four cohorts of the Australian Longitudinal Study of Youth LSAY , using propensity score matching for control cohorts and difference-in-differences techniques, Parker et al. In part, these measures reflect unhappiness with career and future prospects; however, there were no specific measures of mental health. They further find a decline in well-being from to after a recovery in which mapped to unemployment rates at the time.

We do so by accounting for consumer confidence in addition to actual labor market conditions in our models, using the full SDQ measure they use an abbreviated five-item measure , and seeking to replicate in an Australian setting.

We use longitudinally gathered and richly characterized developmental measures of parents, children, and area-level effects, covering the period before, during, and after the Great Recession in Australia.

These data allow us to isolate the mental health effects of the stress generated by anticipation of the Great Recession from any mental health effects associated with deteriorating macroeconomic conditions. Materials and Methods 2.

Data For this project, we link multiple data sources to construct a data set which includes information on a sample of mothers and their children, local unemployment expectations and local labor market conditions. The data sets, key variables, and linkage process are described below.

The study recruited two cohorts, a birth cohort comprising children aged 0—1 years and a child cohort children aged 4—5 years , known as cohort B and K, respectively. Interviews for wave one were undertaken in , with follow-up interviews conducted on a bi-annual basis. There are currently six waves of data released, covering the years to , which allows us to capture the pre- and post-crisis periods.

The questionnaire comprises 25 items that collapse into five problem scales: emotional symptoms, conduct problems, hyperactivity-inattention, peer problems, and prosocial behavior [ 46 ]. The questions for each sub-scale are the same at each age, other than two questions on the conduct disorders sub-scale which vary slightly for 4-year-olds, with two items on antisocial behavior replaced by items on oppositionality.

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