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Children of the Post-Communist Transition: Age at the Time of the Parents' Job Loss and Dropping Out of Secondary School

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  • Kertesi Gabor

    ()
    (Institute of Economics, Hungarian Academy of Sciences)

  • Kezdi Gabor

    ()
    (Central European University & Institute of Economics, Hungarian Academy of Sciences)

Abstract

Using data on children whose parents lost their jobs during the post-communist transition of Hungary, we address the causal effect of unexpected long-term unemployment of parents on their children's educational achievement. We estimate the effect of the children's age at the time of their parents' job loss on their probability of dropping out of secondary school (an event that follows the parents' job loss by many years). The treatment is an additional year reared in a family with regularly employed parents, which can be interpreted as additional human capital investment. We provide bounding estimates to the causal effect. The estimated bounds are tight, they show a substantial effect, and the effect is significantly stronger for preschool age children than for older ones.

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Bibliographic Info

Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 7 (2008)
Issue (Month): 2 (January)
Pages: 1-27

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Handle: RePEc:bpj:bejeap:v:7:y:2008:i:2:n:8

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Cited by:
  1. Gabor Kertesi & Gabor Kezdi, 2010. "Roma Employment in Hungary After the Post-Communist Transition," Budapest Working Papers on the Labour Market, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences 1009, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.

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