Effects of falling into poverty on child mental and physical health

Abstract

This paper offers a comprehensive analysis of the health consequences for children when households fall into poverty, focusing on both mental and physical health outcomes. Utilizing a population-based sibling comparison approach, the study examines a wide range of objective health metrics from Danish registers, including general practitioner visits, diagnosis codes, hospitalizations, and prescription drug purchases, tracked throughout childhood. The findings reveal that a sudden onset of poverty significantly and persistently harms adolescents’ mental health, particularly when accompanied by a family breakdown. Additionally, adverse physical health effects are observed in the year of birth. These results underscore the critical interplay between economic hardship and family dynamics in shaping children’s health trajectories.