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The Effect of the Loss of a Parent on the Future Earnings of a Minor Child

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Author Info

  • John Kane

    (Department of Economics, State University of New York, Oswego, 7060 State Route 104, Oswego, NY 13126-3501, USA. E-mails: Kane@oswego.edu; larry.spizman@oswego.edu)

  • Lawrence M Spizman

    (Department of Economics, State University of New York, Oswego, 7060 State Route 104, Oswego, NY 13126-3501, USA. E-mails: Kane@oswego.edu; larry.spizman@oswego.edu)

  • James Rodgers

    ()
    (The Pennsylvania State University, 237 Timberton Circle, Bellefonte, PA 16823-9070, USA.)

  • Rick R Gaskins

    ()
    (Gaskins Associates, PC, P.O. Box 326, Monkton, MD 21111-0326, USA.)

Abstract

We quantify the effect of a parent's absence on a child's future earnings. A parent's absence because of separation or divorce reduces a child's lifetime earnings between 3 and 12 percent. Lifetime educational attainment is adversely affected by between 2 and 4 percent if a parent of the same gender as the child dies (a smaller impact than if absence is because of separation or divorce). No such adverse effect is found if a girl's father or a boy's mother dies. We conclude that it is sensible that lifetime earnings loss to children not be estimated in a parent's wrongful death case.

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Eastern Economic Journal.

Volume (Year): 36 (2010 Summer)
Issue (Month): 3 ()
Pages: 370-390

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Handle: RePEc:pal:easeco:v:36:y:2010:i:3:p:370-390

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Cited by:
  1. Melissa Ruby Banzhaf, 2013. "When It Rains It Pours: Under What Circumstances Does Job Loss Lead to Divorce," Working Papers 13-62, Center for Economic Studies, U.S. Census Bureau.

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