Maternal job loss may affect children’s mental health, research shows

At the international scientific conference on gender equality and female empowerment, held on November 2–3 in Hanoi, researchers and policymakers examined the far-reaching, often intergenerational impacts of economic shocks on families. One notable presentation came from Nguyen Dinh Dao, lecturer in Economics at Phenikaa University, who revealed new findings on how maternal job loss can negatively affect children’s mental health.

Dao’s research, conducted under the supervision of Prof. Luke Connelly and Prof. Stephen Birtch from the University of Queensland, and Dr. Ha Nguyen from the Kids Research Institute in Australia, investigates a critical but under-explored question. Dao examined whether a mother’s job loss has measurable psychological consequences for her children.

He began by situating his work within the broader literature. “We know from previous studies that job loss can seriously affect the physical and mental health of individuals,” said Dao. “But those negative effects don’t just stop at the individual. The job loss of parents can spill over to their children in powerful ways.”

While many existing studies in both developed and developing countries have linked parental unemployment to children’s academic outcomes, far fewer have examined the mental health implications.

Dao emphasised the importance of this gap. “Children’s health can be the pathway through which financial shocks are transmitted across generations,” he noted, going on to explain that children who grow up in households without employed role models may face higher health risks and diminished future opportunities, a cycle that can reinforce persistent inequalities.

Australia was selected as the focus of the study due to the country’s significant public health concerns related to childhood mental disorders. A 2015 study by Lawrence et al. found that approximately 14 per cent of Australian children aged 4 to 17 had been diagnosed with mental disorders during the 2013-2014 period, with boys showing higher vulnerability than girls.

“Researchers recommend that prevention efforts should target the earliest stages of a child’s life,” said Dao. This makes Australia an important case for studying how household shocks, like a mother’s involuntary job loss, might affect children’s emotional and behavioural development.

This study addressed two central questions: What is the effect of maternal job loss on the mental health of Australian children? And if an effect exists, does reduced income explain it? Or do other channels drive the relationship?

To answer these questions, Dao used data from the Longitudinal Study of Australian Children, a nationally representative dataset collected every two years since 2004. The study focused on children under 16 living with their biological mothers, and excluded early observations that could bias the analysis.

Maternal involuntary job loss was identified through survey responses that specified reasons such as retrenchment, redundancy, dismissal, or employer closure. For children’s mental health outcomes, Dao relied on the widely used Strengths and Difficulties Questionnaire, focusing on emotional problems, hyperactivity, and conduct disorder.

Although the rate of involuntary job loss among mothers in the dataset was relatively low, around 1.2 per cent, the psychological impact on children was significant.

For emotional problems, no statistically significant relationship was found. However, for hyperactivity and conduct disorder, the results were both positive and statistically significant. Dao summarised, “When mothers face involuntary job loss, their children are more likely to experience hyperactivity and conduct disorders. These behavioural issues can shape long-term outcomes.”

The study then examined whether income loss was the primary mechanism. Surprisingly, income declines did not fully explain the results. Instead, several alternative channels emerged – maternal mental health deterioration, increases in smoking and other negative coping behaviours, and more frequent episodes of angry parenting.

“We found that the mother’s own mental health and stress-related behaviours played much bigger roles than income loss,” Dao said.

The heterogeneity analysis provided striking insights. Boys were disproportionately affected. “Maternal unemployment hurts boys more, particularly in terms of hyperactivity,” he explained.

Family structure also played a critical role. Children raised by single mothers showed higher likelihoods of psychological difficulties, especially hyperactivity and emotional problems. “Single-mother households are more vulnerable to economic shocks, and the emotional toll is more pronounced,” said Dao.

Interestingly, the timing analysis revealed that maternal job loss during early childhood did not produce long-term mental health effects, suggesting that age and developmental stage shape vulnerability.

Given the focus on maternal job loss, Dao also conducted a parallel analysis on paternal job loss. The results were unexpected. “We found no association between fathers’ job loss and children’s mental health,” he reported. This finding underscores the central caregiving role mothers often play, and the disproportionate emotional burden they carry.

Dao’s research carries important implications for social policy. Programmes addressing unemployment may need to incorporate mental health support for parents, while child-focused interventions must consider family-level shocks. In his closing remarks, Dao stressed,

“Job loss is not just an economic event. It is a family event, one that can shape children’s futures in ways we cannot afford to ignore.”

As Vietnam continues conversations on gender equality and social protection, insights like these highlight the profound interconnections between labour markets, family wellbeing, and the next generation’s development.

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