More Than Money: The Effects of Low-Income Experience in Adolescence on Self-Efficacy and Depression in Adulthood

Background and Purpose: Adolescence is a pivotal stage of development facilitated by various environmental factors, sensitive to rapid physical and psychological changes. This period often builds the foundation for the transition into adulthood. When a lack of financial resources disrupts the stability of the environment during adolescence, it can cause adverse outcomes in health and long-term success. For low-income adolescents, these challenges can be further compounded by complex systemic and social barriers that require adaptation. Gaps in evidence exist in how the experience of low income during adolescence affects well-being in middle adulthood, particularly in self-efficacy and mental health. The present study aimed to examine the relationship between low-income family experience in adolescence and self-efficacy and depression in middle adulthood, using a lens of empowerment to identify potential adaptive strengths.

Methods: The study utilized secondary data from Wave V (2016-2018) of the National Longitudinal Study of Adolescent Health (Add Health) study that examined adolescent development into adulthood over the course of over 20 years. The sample includes respondents aged 33 to 43 years from across the United States (N=4,196). Data were collected through online surveys and in-person or telephone interviews. Key study variables included (a) self-reported perception of family income at age 16 (five-point Likert scale item: 1 =“A lot worse off” to 5 =“A lot better off”), (b) self-efficacy (binary item 0 =low self-efficacy and 1 =high self-efficacy), and (c) depression levels (five-items of four-point Likert scale rooted in the Center for Epidemiologic Studies Depression Scale (CES-D): 1 =lower depression to 4 =higher depression). Sociodemographic characteristics (e.g., gender, age, sexuality, etc.) were included as control variables to contextualize the study. Binary logistic and multiple linear regression analyses were conducted. The Statistical Package for Social Sciences (SPSS) Version 29 was utilized for the analysis.

Results: Analyses revealed marginal indications of higher-income experience during adolescence increasing self-efficacy levels in middle adulthood compared to low-income experience (Odds Ratio = 1.524, 95% Confidence Interval (95%): 0.964, 2.410], p < 0.10), but lacks evidence of a clear difference between income levels when including demographic variables. Each higher income level during adolescence significantly decreased depression levels in middle adulthood compared to low-income experience (b = -0.181, p < 0.001). Gender, sexuality, education, and marriage also revealed themselves as significant indicators of self-efficacy and depression, expanding insight on risk and protective factors for marginalized groups.

Conclusion and Implications: These findings highlight the need for studying self-efficacy from an intersectional lens and the continuous adverse impacts of low income on mental health across the lifespan. Income during adolescence is not the only indicator of self-efficacy and must be explored from an intersectional lens. Higher income, however, may also relieve exposure to stressors that increase depression, therefore lowering risks of psychopathology. Based on empowerment and self-efficacy theories that focuses on building personal and community strength, findings highlight the importance for social work interventions to emphasize both individualized support and active involvement in systemic and community efforts against low-income adversities for proactive change.