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A Disadvantaged Childhood Matters More if Local Unemployment Is High

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  • Wouter Zwysen

Abstract

Using multilevel models on the German Socio‐Economic Panel Study this paper shows that disadvantaged young adults (16‐35 years old) are more affected by the business cycle than their similarly educated counterparts from more advantaged backgrounds. We propose that a disadvantaged background lowers desirability on the labour market, which matters more to employers as the labour market tightens. When the local unemployment rate is high, young adults from adisadvantaged background are less likely to be hired for good jobs or hired at all than their more advantaged counterparts. These results are robust to different operationalisations and sibling fixed effects.

Suggested Citation

  • Wouter Zwysen, 2014. "A Disadvantaged Childhood Matters More if Local Unemployment Is High," SOEPpapers on Multidisciplinary Panel Data Research 725, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp725
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.493923.de/diw_sp0725.pdf
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    Keywords

    labour; family and networks; income and poverty;
    All these keywords.

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