Early-Life Circumstance and Adult Psychological Well-Being

Disparities in psychological well-being during adulthood may originate in early-life circumstances, yet the long-term determinants of well-being remain less well understood than contemporaneous factors. This study examines whether early-life exposure to a positive wealth shock, China’s Household Responsibility System, has lasting effects on adult psychological well-being. Utilising the staggered implementation of the reform as a natural experiment, we find that individuals exposed to the reform during the in-utero period and early childhood exhibit significantly higher adult life satisfaction and better mental health outcomes. The effects are more pronounced among males, children of less-educated parents, residents of flatland areas, and farming households. Overall, the findings show that favourable early-life conditions can have persistent effects on adult life satisfaction and mental health.