Knowledge and Resource Hub
24 September 2018

The long-run impact of childhood poverty and the mediating role of education

This paper examines the role of education as a causal channel through which growing up poor affects economic outcomes in adulthood in the European Union. The findings showed that being poor in childhood significantly decreased the level of income in adulthood and also increased the average probability of being poor. Furthermore, education played a significant role in the intergenerational transmission of economic wellbeing. The results were particularly relevant for Mediterranean and central and eastern European countries.