Subjective Well-Being of Children and Caregivers: The Role of Caregiver Traits and Socioeconomic Pressures in Ethiopia

Whilst important and shaped by economic pressures, children’s subjective well-being (SWB) remains largely overlooked in low-income settings. This study examines: (i) whether economic shocks affect children’s SWB through caregivers’ well-being pathways, and (ii) differences in children’s SWB in relation to their health, caregivers’ education, and food insecurity. The study uses data from the younger cohort of the Young Lives longitudinal study, comprising 5,759 observations from 2006 to 2016, analysed using fixed-effects and structural equation models. Findings show that lower children’s SWB is associated with poorer health, lower caregiver education and well-being, and higher food insecurity. Economic shocks – such as rising food prices and job or enterprise loss – negatively affect both caregiver and child SWB, with job loss exerting strong indirect effects through caregiver–child pathways. Thus, findings highlight the need to strengthen family support systems, reduce economic stress, and improve caregiver education, food security, and resilience to shocks.