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Parental Separation during Childhood and Adult Children’s Wealth

This study examines the association between parental separations during childhood and economic wealth of adult children later in life, contributing to a better understanding of inequalities resulting from early-life conditions in families of origin. We use data from the Household, Income and Labour Dynamics in Australia (HILDA, N=7,066 individuals) Survey. We estimate random-effects growth curve models after matching to predict wealth over individuals’ life courses. We find that parental separation is associated with substantially less net wealth for adult children. The negative association is limited to adult children who experienced parental divorce before age 15. The association of parental separation with adult children’s wealth changes little over children’s life courses. The most likely pathway through which parental separation influences adult children’s wealth is through the partnership and childbearing choices made by adult children who experienced parental separation.