Oh to be young again? Understanding the decline in wellbeing among young Australians

Abstract

Global reports suggest a decline in social connection, trust and wellbeing may be occurring for young people. Using data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, this study investigates the relationship between social capital and subjective wellbeing among young Australians. The analysis draws on social capital and life course theory and uses factor analysis to construct measures for youth social capital. Pooled Ordinary Least Squares models are used to estimate associations, while two-stage least squares is used to address endogeneity. The results confirm that social capital is positively associated with happiness, and indicate a causal link. Quantile regression results highlight heterogeneity across the wellbeing distribution, with social capital being especially important for unhappy young people. These findings raise concerns about experiences of youth and highlight the need for policies that foster social connection and trust among young people in Australia.