Psychological Wellness and Altruism: How Early‐Life Risks Shape Adult Preferences

Jean Baptiste Habyarimana and Vikas Kakkar

Kyklos, 2025, vol. 78, issue 2, 525-545

Abstract: Theoretical concerns suggest that psychological wellness risks experienced during one period can influence endogenous preferences in subsequent periods. This study examines the relationship between childhood psychological wellness risk and altruistic attitudes in adulthood. We find that a one standard deviation increase in the likelihood of experiencing childhood psychological distress predicts a 0.28% to 2.32% decrease (in standard deviation terms) in the desire for dynasty‐building and generosity during adulthood. Additionally, we find evidence for the altruism‐habit formation hypothesis. We suggest that experiencing psychological wellness risk leads to more self‐interest–oriented choices rather than altruism‐oriented preferences later in life. These results remain robust across multiple robustness analyses.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bla:kyklos:v:78:y:2025:i:2:p:525-545

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