Family Income and Children’s Emotional Wellbeing: the Mediational Role of Parents’ Life Satisfaction and Emotional Wellbeing in China

Abstract

Utilizing the Chinese Family Panel Studies (CFPS) dataset and the structural equation model, this paper examines the direct and indirect influences of family income on children’s emotional wellbeing as a function of parents’ life satisfaction and parents’ emotional wellbeing. Firstly, the empirical analysis of this paper shows that family income exerts a positive influence on children’s emotional wellbeing outcomes, including depressed, hopeless, helpless, and meaningless feelings. Secondly, the findings show that family income is significantly associated with parents’ emotional wellbeing, through which children’s wellbeing is affected. The intergenerational emotional transmission mechanism is validated. The ability to control personal emotions is an important skill, related not only to personal health but also to children’s health and wellbeing. Furthermore, parents’ life satisfaction serves as the mediator between family income and parents’ emotional wellbeing. If parents are more satisfied with their own lives, they are less likely to experience emotional problems. Policy implications are discussed in the end.