Life Transitions and Human Capital

Abstract

Life transitions refer to life events that can affect individual’s social, emotional and economic
circumstances, as well as their daily routines. These transitions may occur across different
periods of life, from childhood to older age. This thesis consists of three chapters that provide insights into how various life events affect individuals’ human capital, such as education,
income and health. First, we investigate the impact of economic conditions during the first
1000 days of individuals’ lives. This study uses local unemployment rates from urban areas
in England and Wales between 1952 and 1967, along with UK Biobank data. By exploiting
the instrumental variable approach, we find no significant effect of small economic fluctuations
on later-life health and human capital outcomes. Second, I examine how grandparental health
shocks influence family investments in children within multi-generational households. Using
data from the China Family Panel Study and a child fixed effects approach, the findings suggest a negative impact of grandparental health shocks on educational expenditure for children
aged 6 to 15. However, time investments, such as tutoring hours, remain largely unaffected.
Third, I explore the effect of own and spouse’s retirement on individual’s mental health. Using
data from the China Health and Retirement Longitudinal Study and a Regression Discontinuity
Design, the study shows that the eligible retirement age is a good predictor of retirement behaviour. But there is no strong evidence that retirement significantly impacts short-term mental health.

Date of Award	4 Feb 2025
Original language	English
Awarding Institution	University of Bristol
Supervisor	Stephanie von Hinke (Supervisor) & Hans Henrik Sievertsen (Supervisor)