| Abstract: |
This paper adopts a child-centered perspective to study how children perceive
their family’s economic situation. Using linked survey and administrative data
for all children aged 8 to 12 living in Luxembourg, we compare children’s
self-reported assessments of financial hardship with objective monetary
indicators. While child-perceived and income-based financial situations are
positively associated, there are substantial discrepancies. At a given level
of monetary poverty, children living in single-parent households or in migrant
families report higher levels of financial concern. Conditional on
socio-demographic characteristics, monetary poverty and income insecurity
explain little of the variation in perceived financial hardship. In contrast,
the relative income position within schools and child-specific
deprivation—particularly limitations in shared family activities—are strongly
associated with higher level of financial worries. An analysis of discordance
reveals an asymmetry. Overestimation of hardship among non-poor children is
more likely for non-natives, those growing up in a lone family or who are
poorer than their schoolmates, whereas underestimation among poor children
shows weaker and less systematic correlates. These perception gaps matter:
children who report perceived financial hardship display lower life
satisfaction and worse self-rated health even when they are not monetarily
poor, whereas poor children who do not report perceived hardship show
well-being levels closer to those of non-poor peers. Overall, the findings
indicate that children’s perceptions of economic hardship extend beyond their
material living conditions and also reflects their social and emotional
environment. |
| Keywords: |
Child, Poverty, Income, Child well-being, Social comparison, Economic insecurity, Luxembourg, CONDITIONS ECONOMIQUES / ECONOMIC CONDITIONS, DEVELOPPEMENT DE L'ENFANT / CHILD DEVELOPMENT, CONDITIONS DE VIE / LIVING CONDITIONS, LUXEMBOURG / LUXEMBOURG, ENFANT / CHILDREN, PAUVRETE / POVERTY, REVENU / INCOME, BIEN-ETRE / WELL-BEING |