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Job losses and child outcomes

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Author Info

  • Bratberg, Espen
  • Nilsen, Øivind Anti
  • Vaage, Kjell

Abstract

Based on matched employer-employee data from Norway, we analyze the effects of worker displacement in 1986-1987 on their children's earnings in 1999-2001. Using displacement of fathers to indicate an exogenous earnings shock we seek to identify whether family resources have a direct effect on children's economic outcome. Job losses appear to have a negative effect on earnings and employment of those affected, while we find no significant effects on earnings of the next generation.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 15 (2008)
Issue (Month): 4 (August)
Pages: 591-603

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Handle: RePEc:eee:labeco:v:15:y:2008:i:4:p:591-603

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Displacement Intergenerational earnings correlations;

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References

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  1. repec:oup:restud:v:78:y::i:4:p:1462-1489 is not listed on IDEAS
  2. Rolf Aaberge & Anders Björklund & Markus Jäntti & Peder J. Pedersen & Nina Smith & Tom Wennemo, 1997. "Unemployment Shocks and Income Distribution How Did the Nordic Countries Fare During their Crises?," Discussion Papers 201, Research Department of Statistics Norway.
  3. Mari Rege, Kjetil Telle & Mark Votruba, 2005. "The Effect of Plant Downsizing on Disability Pension Utilization," Discussion Papers 435, Research Department of Statistics Norway.
  4. Couch, Kenneth A. & Lillard, Dean R., 1998. "Sample selection rules and the intergenerational correlation of earnings," Labour Economics, Elsevier, vol. 5(3), pages 313-329, September.
  5. Espen Bratberg & Oivind Anti Nilsen & Kjell Vaage, 2005. "Intergenerational Earnings Mobility in Norway: Levels and Trends," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 419-435, 09.
  6. Goldberger, A.S., 1989. "Economic And Mechanical Models Of Intergenerational Transmission," Working papers 374, Wisconsin Madison - Social Systems.
  7. Grawe, Nathan D., 2003. "Life Cycle Bias in the Estimation of Intergenerational Earnings Persistence," Analytical Studies Branch Research Paper Series 2003207e, Statistics Canada, Analytical Studies Branch.
  8. Bratsberg,Bernt & Røed, Knut & Raaum, Oddbjørn & Naylor, Robin & Jäntti, Markus & Eriksson, Tor & Österbacka, Eva, 2007. "Nonlinearities in Intergenerational Earnings Mobility : Consequences for Cross-Country Comparisons," The Warwick Economics Research Paper Series (TWERPS) 782, University of Warwick, Department of Economics.
  9. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  10. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September.
  11. Gary S. Becker & Nigel Tomes, . "Human Capital and the Rise and Fall of Families," University of Chicago - Population Research Center 84-10, Chicago - Population Research Center.
  12. Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2005. "Intergenerational Mobility: Trends Across the Earnings Distribution," Working Papers in Economics 04/05, University of Bergen, Department of Economics.
  13. Ann Huff Stevens & Marianne Page & Philip Oreopoulos, 2005. "The Intergenerational Effects of Worker Displacement," Working Papers 521, University of California, Davis, Department of Economics.
  14. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
  15. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, vol. 87(5), pages 1009-18, December.
  16. Huttunen, Kristiina & Moen, Jarle & Salvanes, Kjell G., 2006. "How Destructive Is Creative Destruction? The Costs of Worker Displacement," IZA Discussion Papers 2316, Institute for the Study of Labor (IZA).
  17. Miles Corak & Andrew Heisz, 1998. "The Intergenerational Earnings and Income Mobility of Canadian," Labor and Demography 9808001, EconWPA.
  18. Anders Björklund & Markus Jäntti, 2000. "Intergenerational mobility of socio-economic status in comparative perspective," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 3-32.
  19. Nathan D. Grawe, 2004. "Reconsidering the Use of Nonlinearities in Intergenerational Earnings Mobility as a Test for Credit Constraints," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
  20. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
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Citations

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Cited by:
  1. Guido Heineck & Oliver Wölfel, 2010. "Parental Risk Attitudes and Children's Secondary School Track Choice," SOEPpapers on Multidisciplinary Panel Data Research 344, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, Elsevier.
  3. Frauke H. Peter, 2013. "Trick or Treat?: Maternal Involuntary Job Loss and Children's Non-cognitive Skills," Discussion Papers of DIW Berlin 1297, DIW Berlin, German Institute for Economic Research.
  4. Michael B Coelli, 2009. "Parental Job Loss, Income Shocks and the Education Enrolment of Youth," Department of Economics - Working Papers Series 1060, The University of Melbourne.
  5. Coelli, Michael B., 2011. "Parental job loss and the education enrollment of youth," Labour Economics, Elsevier, vol. 18(1), pages 25-35, January.

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