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Familial Support for Unemployed Youth

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  • Kazuyasu Sakamoto
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    Abstract

    Between the late 90's and the beginning of the 21st century in Japan the unemployment rate among young people (under the age of 30) grew from 4.7% in 1993 to 9.8% in 2002. However, the high unemployment rate of young people (9.8%, compared to an average rate of 5.4% in 2002) did not turn into a major social issue in the mass media because it is considered that familial support is enough to keep the life of the young unemployed stable. This paper investigates the relationship between the unemployment of young never-married women and the financial situation of their parents, using The Japanese Panel Survey of Consumers (JPSC) from 1994 to 2004. I use the reform of the eligibility age(only for male) as the instrumental variable, to identify the parental economic strength. The result shows the decrease of the discretionary expenditure of the unemployed people and the financial strength of their parents are negatively correlated. Also, the financial strength of the parents negatively affects the re-employment rate of the respondents.

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    File URL: http://hi-stat.ier.hit-u.ac.jp/research/discussion/2006/pdf/D06-201.pdf
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    Bibliographic Info

    Paper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d06-201.

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    Date of creation: Jan 2007
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    Handle: RePEc:hst:hstdps:d06-201

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    Keywords: unemployment; familial transfer; the Japanese Panel Survey of Consumers; limited dependent variable model with endogenous variables;

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    1. John F. Ermisch & Marco Francesconi, 2001. "Family structure and children's achievements," Journal of Population Economics, Springer, vol. 14(2), pages 249-270.
    2. Marianne Bertrand & Douglas Miller & Sendhil Mullainathan, 2000. "Public Policy and Extended Families: Evidence from South Africa," NBER Working Papers 7594, National Bureau of Economic Research, Inc.
    3. Ermisch, John & Francesconi, Marco, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, vol. 68(270), pages 137-56, May.
    4. David Card & Thomas Lemieux, 1997. "Adapting to Circumstances: The Evolution of Work, School, and Living Arrangements Among North American Youth," NBER Working Papers 6142, National Bureau of Economic Research, Inc.
    5. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
    6. Manacorda, Marco & Moretti, Enrico, 2005. "Why Do Most Italian Young Men Live With Their Parents? Intergenerational Transfers and Household Structure," CEPR Discussion Papers 5116, C.E.P.R. Discussion Papers.
    7. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, December.
    8. David G. Blanchflower & Richard B. Freeman, 2000. "Youth Employment and Joblessness in Advanced Countries," NBER Books, National Bureau of Economic Research, Inc, number blan00-1, May.
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