Hidden dynamics of economic hardship: Characterizing economic unpredictability and its role on self-regulation in early childhood

Abstract

Economic hardship is known to shape children's self-regulation, yet little is understood about how fluctuations in hardship unfold over time and whether different patterns of unpredictability carry unique developmental consequences. Using a socioeconomically diverse sample, we tracked families' subjective economic hardship across 15-36 monthly assessments and applied an environmental statistics framework to quantify four indices of unpredictability: changepoints in mean, changepoints in variance, coefficient of variation, and noise. PCA identified two distinct forms of economic unpredictability: one marked by frequent, unpredictable hardship, and another by infrequent but abrupt hardship. Economic unpredictability was disproportionately experienced by racially minoritized and lower-income families in our sample, reinforcing structural inequities in economic resources. Relations between these indices and caregiver-reported measures of family routines and day-to-day unpredictability were weak, suggesting wide heterogeneity in the ways families adapt to economic unpredictability. Leveraging propensity score methods, we isolated the effects of unpredictability from hardship severity, finding that both were associated with greater self-regulation challenges in early childhood, with the strongest effects for hardship severity. These findings underscore the importance of capturing economic hardship as a dynamic and multidimensional experience, with implications for policy efforts aimed at promoting stability in families' access to resources over time.

Keywords: Economic hardship; early childhood; environmental unpredictability; self-regulation.