The Impact of Household Debt on Children’s Depressive Symptoms: Evidence from China

TL;DR

High household debt in China is linked to increased depressive symptoms in children, mainly through housing debt and family conflict.

Contribution

This study empirically examines how household debt affects children's mental health in China, identifying key mediating factors.

Findings

Higher household debt is associated with increased depressive symptoms in children.

The effect is mainly driven by housing and nonbank-sourced debt.

Parent–child intimacy and conflict mediate the relationship between debt and children’s mental health.

Abstract

The sustained accumulation of household debt may pose significant challenges to children’s mental health in China, particularly their depressive symptoms. However, limited research has examined this relationship. Using data from the 2020 and 2022 waves of the China Family Panel Studies, covering 805 respondents, we employed a pooled ordinary least squares (POLS) regression model to investigate the impact of household debt on children’s depressive symptoms. Our results show that higher household debt is associated with an increase in children’s depressive symptoms, primarily driven by housing debt and nonbank-sourced debt. These associations appear to operate through reduced parent–child intimacy and increased parent–child conflict. Notably, the adverse impacts are mitigated when fathers work longer hours to repay debt and when marital satisfaction is higher. Overall, our findings highlight important implications for enhancing child welfare and promoting family financial stability.