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Short-Run Effects of Parental Job Loss on Child Health

Author

Listed:
  • Jessamyn Schaller

    (Department of Economics, University of Arizona)

  • Mariana Zerpa

    (Department of Economics, University of Leuven (KU Leuven))

Abstract

Recent research suggests that parental job loss has negative effects on children's outcomes, including their academic achievement and long-run educational and labor market outcomes. In this paper we turn our attention to the effects of parental job loss on children's health. We combine health data from 16 waves of the Medical Expenditure Panel Survey, which allows us to use a fixed-effects specification and still have a large sample of parental job displacements. We find that paternal job loss is harmful to children's physical and mental health, particularly among children in low–socioeconomic status families. By contrast, we find that maternal job loss does not have detrimental effects on child health. Increases in public health insurance coverage compensate for close to half of the loss in private coverage that follows parental displacement, and we find no significant changes in medical-care utilization.

Suggested Citation

  • Jessamyn Schaller & Mariana Zerpa, 2019. "Short-Run Effects of Parental Job Loss on Child Health," American Journal of Health Economics, University of Chicago Press, vol. 5(1), pages 8-41, Winter.
    • Handle: RePEc:ucp:amjhec:v:5:y:2019:i:1:p:8-41
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    Keywords

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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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