When poverty becomes detrimental to life satisfaction in the transition to adulthood

Abstract

This study examines whether poverty becomes more meaningful for young people as they move from youth to adulthood; therefore, the main hypothesis is that poverty becomes increasingly detrimental to individual life satisfaction as young people grow older and – at the same time – enter working life and establish their own households or families. The empirical analysis uses German household panel data and applies indicators for income poverty and material deprivation for a sample of 15- to 29-year-old young men and women. Results show that few facets of poverty impair life satisfaction in youth, and indicators increasingly show significant negative effects as people age. Changes in employment status and household context in the transition to adulthood cannot explain the age differences. Findings indicate that age is an independent reference point for young people in the transition to adulthood. Results also suggest that a more critical discussion is required on the significance of poverty and its measurement during the transition from youth to adulthood.