Economic stress, skills and life outcomes
Funding agency
Australian Research Council
Project period
2019–2025
Project investigators
- Sonja de New
- John de New
- Nattavudh Powdthavee
Research aims
Understanding how economic shocks and inequality shape resilience, aspiration, and opportunity
This project examines how economic stress and inequality influence people’s skills, aspirations, and life outcomes. It explores how experiences such as job loss, financial hardship, and economic downturns affect mental health, wellbeing, and the development of non-cognitive skills — including resilience, motivation, and perseverance — that are vital for success in education and work.
Using natural experiments and advanced econometric methods, the research identifies how economic shocks can reinforce social inequality, and how education and social policy can counteract these effects. A key focus is on how schools and families can foster non-cognitive skills among disadvantaged children, helping them to maintain aspiration and achieve better outcomes despite economic adversity.
The findings provide evidence to inform policies that strengthen human capital, reduce inequality, and promote resilience and opportunity across generations.
Publications
- de New, S., de New, J., Jayawardana, D. and Wong, C. (2014). Dreaming Big: Higher Occupational Aspirations from Persistent and Advantaged Kids. Melbourne Institute Working Paper 10/14.
- Avdic, D., de New, S.C. and Kamhoefer, D. (2021). Economic Downturns and Mental Health in Germany. European Economic Review, 140, 103915.
- de New, S.C., Schurer, S. and Sulzmaier, D. (2021). Gender Differences in the Lifecycle Benefits of Compulsory Schooling Policies. European Economic Review, 140, 103910.
- Botha, F., de New, J., de New, S.C., Ribar, D.C., and Salamanca, N. (2021). Implications of COVID-19 Labour Market Shocks for Inequality in Financial Wellbeing. Journal of Population Economics, 34(2), 655–689.