Measuring resilience to major life events

There is great interest in understanding who the population resilient face of major life events, and not. In this paper we construct a revealed measure adulthood psychological resilience by modelling individuals’ responses to ten adverse events using dynamic finite mixture regression model applied 17 years panel data. Our methodology accounts for non-random selection into differences between individuals anticipation, immediate response, speed adaptation. We find considerable heterogeneity such as financial shocks, redundancy bereavement. also that our correlated with clinical measures mental health, it significantly predicts response out-of-sample events. The strongest predictor internal locus control, which an individual's belief outcomes are under their control.