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Parental Joblessness and the Moderating Role of a University Degree on the School-to-Work Transition in Australia and the United States

Author

Listed:
  • Matthew Curry

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne)

  • Irma Mooi-Reci

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne)

  • Mark Wooden

    (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne)

Abstract

Does parental joblessness delay young adults’ school-to-work transitions? If so, can a university degree moderate this relationship? We examine these questions using a representative sample of young adults under the age of 25 that lived with their parents prior to entering the labor market in Australia (N=2,151) and the U.S. (N=811) during the period 2001-2015. Results from Cox proportional hazards models, adjusting for clustering of siblings, demonstrate that parental joblessness is associated with slower school-to-work transitions in both the U.S. and Australia. University degree attainment mitigates much of this negative relationship in Australia, suggesting that parental joblessness is most harmful for Australians who leave school before earning a university degree. There is no evidence for a similar interaction in the U.S., suggesting that the relationship between education, parental joblessness, and the school-to-work transition may depend on contextual factors such as the welfare regime.

Suggested Citation

  • Matthew Curry & Irma Mooi-Reci & Mark Wooden, 2018. "Parental Joblessness and the Moderating Role of a University Degree on the School-to-Work Transition in Australia and the United States," Melbourne Institute Working Paper Series wp2018n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2018n06
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    More about this item

    Keywords

    Employment; education; generations; social mobility;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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