Changes in economic deprivation and parental self-efficacy: Unemployment, poverty, and the mediating effect of psychological distress

Objective: The article investigates the influence of three aspects of economic deprivation on parental self- efficacy, and whether, or to what extent, these effects are mediated by psychological distress. Background: Scholarship shows that psychological resources such as parental self-efficacy can attenuate the negative repercussions of poverty for families. The article builds on the family stress model that higlights the role of economic deprivation for family functioning by Conger and colleagues. It focuses on the consequences of transitioning into unemployment, objective poverty, and subjective poverty for parental self- efficacy, and the potential mediating effect of psychological distress. Method: Using data from the German Family Panel (pairfam) Waves 4 to 12 (2011-2020), Baron and Kenny mediation analyses are conducted based on fixed effects regressions with standard errors based on clustered bootstrap procedure. Results: The results show that transitioning into subjective poverty significantly decreases parental self- efficacy, and that only a marginal part of this effect is mediated by psychological distress. A transition into objective poverty, by contrast, has no effect on parental self-efficacy. Likewise, unemployment has no direct effect on parental self-efficacy. However, transitioning into short-term unemployment reduces psychological distress and thereby buffers parent's self-efficacy. This does by contrast not apply for long-term unemployment. Conclusion: The findings demonstrate the importance of differentiating between specific aspects of economic deprivation when investigating its consequences for parental self-efficacy and considering psychological distress as a potential mediator. Moreover, the findings provide longitudinal evidence for the consequences of a transition into economic deprivation for parental self-efficacy and point to the presence of gender effects with regard to unemployment.