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Children of the Post-Communist Transition: Age at the Time of the Parents' Job Loss and Dropping Out of Secondary School

Listed author(s):
  • Kertesi Gabor

    ()

    (Institute of Economics, Hungarian Academy of Sciences)

  • Kezdi Gabor

    ()

    (Central European University & Institute of Economics, Hungarian Academy of Sciences)

Using data on children whose parents lost their jobs during the post-communist transition of Hungary, we address the causal effect of unexpected long-term unemployment of parents on their children's educational achievement. We estimate the effect of the children's age at the time of their parents' job loss on their probability of dropping out of secondary school (an event that follows the parents' job loss by many years). The treatment is an additional year reared in a family with regularly employed parents, which can be interpreted as additional human capital investment. We provide bounding estimates to the causal effect. The estimated bounds are tight, they show a substantial effect, and the effect is significantly stronger for preschool age children than for older ones.

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Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 7 (2008)
Issue (Month): 2 (January)
Pages: 1-27

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Handle: RePEc:bpj:bejeap:v:7:y:2008:i:2:n:8
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  1. Chevalier, Arnaud & Harmon, Colm P. & O'Sullivan, Vincent & Walker, Ian, 2005. "The Impact of Parental Income and Education on the Schooling of Their Children," IZA Discussion Papers 1496, Institute for the Study of Labor (IZA).
  2. Flavio Cunha & James Heckman & Susanne Schennach, 2010. "Estimating the technology of cognitive and noncognitive skill formation," CeMMAP working papers CWP09/10, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  3. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
  4. Ann Huff Stevens & Marianne Page & Philip Oreopoulos, 2005. "The Intergenerational Effects of Worker Displacement," Working Papers 521, University of California, Davis, Department of Economics.
  5. James Heckman & Pedro Carneiro, 2003. "Human Capital Policy," NBER Working Papers 9495, National Bureau of Economic Research, Inc.
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