Next Generation Socioemotional Wealth: Impact of Work on Relational and Psychological Outcomes

Abstract

Ecological theories of human development suggest that adolescent work has negative socioemotional impact. We refine the existing theory by incorporating work context and argue that working in a family firm, as opposed to a non-family firm, at a young age influences socioemotional wealth positively instead. We test how managerial choices of family businesses owners impact family members by investigating the impact of adolescents working in family firms on the relationship with their parents and their overall psychological well-being. Using weighted regression analysis of 9 years of longitudinal data from the National Longitudinal Survey of Children and Youth (NLSCY), we find that those adolescents who work in their family firms on an ongoing basis report a better relationship with their parents, and better psychological well-being than their counterparts. Results suggest that family managers should encourage their children to work in their family firms.