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Extracting the causal component from the intergenerational correlation in unemployment

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  • Ekhaugen, Tyra

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    (The Ragnar Frisch Centre for Economic Research)

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    Abstract

    This paper examines the intergenerational correlation in unemployment in Norway and, by use of the sibling-difference method, separates that correlation into its causal and non-causal parts. Detailed register data covering the entire Norwegian population provide the long panel of data this method requires, and allow experimentation with different definitions of parental unemployment. Confirming existing evidence, I find a substantial intergenerational correlation in unemployment. Approximately half of this is due to observed family heterogeneity. The estimated causal effect is non-significantly negative for all measures of parental unemployment.

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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2005/Memo-21-2005.pdf
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    Bibliographic Info

    Paper provided by Oslo University, Department of Economics in its series Memorandum with number 21/2005.

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    Length: 22 pages
    Date of creation: 04 Oct 2005
    Date of revision:
    Handle: RePEc:hhs:osloec:2005_021

    Contact details of provider:
    Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
    Phone: 22 85 51 27
    Fax: 22 85 50 35
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    Web page: http://www.oekonomi.uio.no/indexe.html
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    Keywords: Intergenerational mobility; unemployment; sibling estimators;

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    1. Bjorn, Gustafsson & Gustafsson, Bjorn & Osterberg, Torun & Corak, Miles, 2001. "Intergenerational Influences on the Receipt of Unemployment Insurance in Canada and Sweden," Analytical Studies Branch Research Paper Series 2001159e, Statistics Canada, Analytical Studies Branch.
    2. John Ermisch & Marco Francesconi & David J. Pevalin, 2004. "Parental partnership and joblessness in childhood and their influence on young people's outcomes," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 167(1), pages 69-101.
    3. Raaum, Oddbjørn & Rogstad, Jon & Røed, Knut & Westlie, Lars, 2005. "Young and Out: An Application of a Prospects-Based Concept of Social Exclusion," Memorandum, Oslo University, Department of Economics 17/2005, Oslo University, Department of Economics.
    4. Knut Røed & Morten Nordberg, 2004. "Have the relative employment prospects for the low-skilled deteriorated after all?," Journal of Population Economics, Springer, Springer, vol. 17(1), pages 67-82, February.
    5. Hanushek, Eric A, 1992. "The Trade-Off between Child Quantity and Quality," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(1), pages 84-117, February.
    6. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 47(1), pages 225-38, January.
    7. O'Neill, Donal & Sweetman, Olive, 1998. "Intergenerational Mobility in Britain: Evidence from Unemployment Patterns," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(4), pages 431-47, November.
    8. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    9. Peter Gottschalk, 1993. "Is The Correlation In Welfare Participation Across Generations Spurious?," Boston College Working Papers in Economics 224, Boston College Department of Economics.
    10. John F. Ermisch & Marco Francesconi, 2001. "Family structure and children's achievements," Journal of Population Economics, Springer, Springer, vol. 14(2), pages 249-270.
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