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The long-term effect of childhood poverty

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  • Rune V. Lesner

    (Aarhus University)

Abstract

This paper uses variation among siblings to identify the consequences of childhood poverty on both labour and marriage market outcomes. In the labour market, individuals who experienced childhood poverty are found to have lower earnings and lower labour market attachment and to have worse jobs both vertically in terms of low-paying industries and horizontally in terms of job positions. In the marriage market, childhood poverty is found to have negative consequences for the probability of marriage, cohabitation, and having children around the age of 30. The effect sizes are found to exhibit an inverse u-shape in the age of the child, peaking during adolescence. Results on educational choices suggest that the mechanisms behind these results can be that childhood poverty affects the skill formation, networks, and decision making of the child.

Suggested Citation

  • Rune V. Lesner, 2018. "The long-term effect of childhood poverty," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(3), pages 969-1004, July.
    • Handle: RePEc:spr:jopoec:v:31:y:2018:i:3:d:10.1007_s00148-017-0674-8
    DOI: 10.1007/s00148-017-0674-8
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    More about this item

    Keywords

    Poverty; Child development; Family background; Siblings; Intergenerational mobility;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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