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Job losses and child outcomes

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Author Info

  • Bratberg, Espen

    ()
    (University of Bergen, Department of Economics)

  • Nilsen, Øivind Anti

    ()
    (NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION)

  • Vaage, Kjell

    ()
    (University of Bergen, Department of Economics)

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. As in previous Scandinavian studies, we find the intergenerational earnings mobility to be fairly high compared to the U.S. and the U.K. Job losses appear to have a negative effect on earnings and employment of those affected, while we find no significant effects on offspring.

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Bibliographic Info

Paper provided by University of Bergen, Department of Economics in its series Working Papers in Economics with number 07/07.

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Length: 22 pages
Date of creation: 01 Jun 2007
Date of revision:
Handle: RePEc:hhs:bergec:2007_007

Contact details of provider:
Postal: Institutt for økonomi, Universitetet i Bergen, Postboks 7802, 5020 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
Email:
Web page: http://www.uib.no/econ/en
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Related research

Keywords: Displacement; intergenerational earnings correlations.;

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References

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  1. Gary S. Becker & Nigel Tomes, . "Human Capital and the Rise and Fall of Families," University of Chicago - Population Research Center, Chicago - Population Research Center 84-10, Chicago - Population Research Center.
  2. 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.
  3. Espen Bratberg & Oivind Anti Nilsen & Kjell Vaage, 2005. "Intergenerational Earnings Mobility in Norway: Levels and Trends," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 107(3), pages 419-435, 09.
  4. Philip Oreopoulos & Marianne Page & Ann Huff Stevens, 2005. "The Intergenerational Effect of Worker Displacement," NBER Working Papers 11587, National Bureau of Economic Research, Inc.
  5. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, American Economic Association, vol. 87(5), pages 1009-18, December.
  6. Goldberger, A.S., 1989. "Economic And Mechanical Models Of Intergenerational Transmission," Working papers, Wisconsin Madison - Social Systems 374, Wisconsin Madison - Social Systems.
  7. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," NBER Working Papers 11943, National Bureau of Economic Research, Inc.
  8. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
  9. 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.
  10. Couch, Kenneth A. & Lillard, Dean R., 1998. "Sample selection rules and the intergenerational correlation of earnings," Labour Economics, Elsevier, Elsevier, vol. 5(3), pages 313-329, September.
  11. 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, Research Department of Statistics Norway 201, Research Department of Statistics Norway.
  12. Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2005. "Intergenerational Mobility: Trends Across the Earnings Distribution," Working Papers in Economics, University of Bergen, Department of Economics 04/05, University of Bergen, Department of Economics.
  13. Anders Björklund & Markus Jäntti, 2000. "Intergenerational mobility of socio-economic status in comparative perspective," Nordic Journal of Political Economy, Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 3-32.
  14. repec:oup:restud:v:78:y::i:4:p:1462-1489 is not listed on IDEAS
  15. 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).
  16. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, American Economic Association, vol. 82(3), pages 393-408, June.
  17. 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).
  18. Miles Corak & Andrew Heisz, 1998. "The Intergenerational Earnings and Income Mobility of Canadian," Labor and Demography, EconWPA 9808001, EconWPA.
  19. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, American Economic Association, vol. 82(3), pages 409-29, June.
  20. Mari Rege, Kjetil Telle & Mark Votruba, 2005. "The Effect of Plant Downsizing on Disability Pension Utilization," Discussion Papers, Research Department of Statistics Norway 435, Research Department of Statistics Norway.
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Cited by:
  1. Heineck, Guido & Wölfel, Oliver, 2010. "Parental risk attitudes and children's secondary school track choice," IAB Discussion Paper 201019, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Black, Sandra & Devereux, Paul J., 2010. "Recent Developments in Intergenerational Mobility," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7786, C.E.P.R. Discussion Papers.
  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, The University of Melbourne 1060, The University of Melbourne.
  5. Coelli, Michael B., 2011. "Parental job loss and the education enrollment of youth," Labour Economics, Elsevier, Elsevier, vol. 18(1), pages 25-35, January.

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