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Parental Job Loss and Children's Careers

Author

Listed:
  • Huttunen, Kristiina

    (Aalto University)

  • Riukula, Krista

    (ETLA - The Research Institute of the Finnish Economy)

Abstract

We study the effect of parental job loss on children's outcomes using administrative data from Finland. We focus on two channels through which parental job loss can affect children's careers: 1) by affecting the child's field of study choices and 2) by weakening social ties to the labor market. We find evidence supporting both mechanisms: a father's job loss decreases the likelihood of the child choosing the father's field of study or finding employment in the father's plant. Children of displaced fathers have lower earnings; however, we find no effects on the outcomes measured before the study choices are made.

Suggested Citation

  • Huttunen, Kristiina & Riukula, Krista, 2019. "Parental Job Loss and Children's Careers," IZA Discussion Papers 12788, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12788
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    References listed on IDEAS

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    9. Nathaniel G. Hilger, 2016. "Parental Job Loss and Children's Long-Term Outcomes: Evidence from 7 Million Fathers' Layoffs," American Economic Journal: Applied Economics, American Economic Association, vol. 8(3), pages 247-283, July.
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    Cited by:

    1. Britto, Diogo & Melo, Caíque & Sampaio, Breno, 2022. "The Kids Aren't Alright: Parental Job Loss and Children's Outcomes within and beyond Schools," IZA Discussion Papers 15591, Institute of Labor Economics (IZA).
    2. Willage, Barton & Willén, Alexander, 2022. "Postpartum Job Loss: Transitory Effect on Mothers, Long-run Damage to Children," European Economic Review, Elsevier, vol. 150(C).
    3. Sarah Cattan & Christine Farquharson & Sonya Krutikova & Andrew McKendrick & Almudena Sevilla, 2023. "Parental labour market instability and children's mental health during the pandemic," IFS Working Papers W23/21, Institute for Fiscal Studies.
    4. Martti Kaila & Emily Nix & Krista Riukula, 2021. "Disparate Impacts of Job Loss by Parental Income and Implications for Intergenerational Mobility," Opportunity and Inclusive Growth Institute Working Papers 53, Federal Reserve Bank of Minneapolis.
    5. Martínez-Jiménez, Mario, 2023. "Parental nonemployment in childhood and children’s health later in life," Economics & Human Biology, Elsevier, vol. 49(C).
    6. Müller, Dagmar, 2021. "Lost Opportunities: Work during High School, Establishment Closures and the Impact on Career Prospects," Working Paper Series 1381, Research Institute of Industrial Economics.
    7. Bingley, Paul & Cappellari, Lorenzo & Ovidi, Marco, 2023. "When It Hurts the Most: Timing of Parental Job Loss and a Child's Education," IZA Discussion Papers 16367, Institute of Labor Economics (IZA).
    8. Andersen, Carsten & Houmark, Mikkel Aagaard & Nielsen, Helena Skyt & Svarer, Michael, 2022. "Children in the Aftermath of the Great Recession," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2022(1), pages 1-28.
    9. Riukula, Krista, 2024. "Childhood Shocks and Fertility: Evidence from Parental Job Loss," ETLA Working Papers 112, The Research Institute of the Finnish Economy.

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    More about this item

    Keywords

    education; social ties; study field; childhood income; job loss; earnings;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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