Tags: recession | children | income | Corak

Children Will Feel Great Recession's Pain for Decades

By    |   Friday, 11 October 2013 08:00 AM

Children will suffer from the Great Recession for years to come, concludes University of Ottawa professor Miles Corak.

"Lost jobs, falling incomes and foreclosures will likely compromise the capacity of children to become all that they can be, with the effects of the recession echoing not just across years, but also across generations," Corak writes on his blog.

People base their spending, including home purchases and children's education, on what they expect to earn over the long term. The recession shattered those expectations, and America has yet to recover, he notes.

Editor’s Note:
New Video Exposes a ‘Great Retirement Heist’

Research shows that long-term job loss reduces workers' income by up to 25 percent, Corak claims. New jobs workers find rarely pay as much as the jobs they lost. That has a huge impact on workers' children.

Children have also suffered from the unprecedented number of foreclosures during the recession, as they must deal with changing schools, neighborhoods and even cities.

"Frequent moves and a repeated loss of friends and networks lowers high school graduation rates and the adult incomes kids will ultimately earn," he maintains.

Besides depleting bank accounts and home equity, the recession prompted a crisis of confidence, he adds. Even for those not experiencing a job loss, family life is more stressful and parenting more challenging,

As a result, parents are more likely to employ authoritarian parenting styles with unfair punishments and little warmth or nurturing. The risk that children will be physically abused has increased by sixfold, Corak says, citing a study by researchers at Columbia University and the London School of Economics.

Before the recession, fewer than 2 percent of the nine year-olds studied were at risk of being hit by their mothers at least every month, the research shows. When consumer confidence hit bottom in 2007, about 8 percent were.

The Great Recession contributed to the growing divide between poor and wealthy families, making life for difficult for children in economically disadvantaged homes, according to Ohio State University research.

"There is no doubt that the gap between America's haves and have-nots grew larger than ever during the 2000s," states Zhenchao Qian, author of the report "Divergent Paths of American Families."

"This gap has shaped American families in multiple ways. It influences the kind of families we live in and the kind of family environment in which we raise our children."

The fate of America's children, especially those from economically disadvantaged backgrounds, remains a serious issue, Qian says.

"Economic inequality is key to the polarization of American families, and the disadvantages of children living in single and unstable families will just worsen the racial and ethnic inequalities we already have in this country."

Editor’s Note: New Video Exposes a ‘Great Retirement Heist’

Related Stories:

'Extreme' Poverty in US Has More Than Doubled, Study Says

Households Earning Less Income Than When Recession Ended

© 2020 Newsmax Finance. All rights reserved.

1Like our page
Children will suffer from the Great Recession for years to come, concludes University of Ottawa professor Miles Corak.
Friday, 11 October 2013 08:00 AM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved