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Blame the Parents? How Parental Unemployment Affects Labor Supply and Job Quality for Young Adults

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  • Andrey Fradkin
  • Frédéric Panier
  • Ilan Tojerow

Abstract

We study the role of shocks to parental income in determining the labor market outcomes of children entering the labor market. We find that a child whose parent loses a job prior to the child’s labor market entry is, on average, induced to work 9% more in the 3 years following labor market entry than a child whose parents lose a job after the child’s entry. This effect is concentrated on the extensive margin and decreases in magnitude over time. We find no evidence that these shocks affect the quality of the job that entrants find.

Suggested Citation

  • Andrey Fradkin & Frédéric Panier & Ilan Tojerow, 2019. "Blame the Parents? How Parental Unemployment Affects Labor Supply and Job Quality for Young Adults," Journal of Labor Economics, University of Chicago Press, vol. 37(1), pages 35-100.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/698896
    DOI: 10.1086/698896
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    Cited by:

    1. Hansen, Kerstin F. & Stutzer, Alois, 2022. "Parental unemployment, social insurance and child well-being across countries," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 600-617.
    2. Gathmann, Christina & Huttunen, Kristiina & Jernström, Laura & Sääksvuori, Lauri & Stitzing, Robin, 2020. "In Sickness and in Health: Job Displacement and Health Spillovers in Couples," IZA Discussion Papers 13329, Institute of Labor Economics (IZA).
    3. 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).
    4. Lindgren, Petter Y. & Presterud, Ane Ofstad, 2021. "Expanding the Norwegian Armed Forces in the Time of Corona: Benefit-Cost Analysis in the Context of High Unemployment Rate," MPRA Paper 106405, University Library of Munich, Germany.
    5. Hupkau, Claudia & Ruiz-Valenzuela, Jenifer & Isphording, Ingo E. & Machin, Stephen, 2023. "Labour Market Shocks and Parental Investments during the Covid-19 Pandemic," Labour Economics, Elsevier, vol. 82(C).
    6. Claudia Hupkau & Ingo Isphording & Stephen Machin & Jenifer Ruiz-Valenzuela, 2020. "Labour market shocks during the Covid-19 pandemic: inequalities and child outcomes," CEP Covid-19 Analyses cepcovid-19-015, Centre for Economic Performance, LSE.
    7. Bernhard Schmidpeter, 2020. "The Long-Term Labor Market Effects of Parental Unemployment," Upjohn Working Papers 20-322, W.E. Upjohn Institute for Employment Research.
    8. Schmidpeter, Bernhard, 2020. "The long-term labor market effects of parental unemployment," Ruhr Economic Papers 866, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Stefan Tübbicke, 2023. "How sensitive are matching estimates of active labor market policy effects to typically unobserved confounders?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-16, December.
    10. Mari, Gabriele & Keizer, Renske & van Gaalen, Ruben, 2022. "The Timing of Parental Unemployment, Insurance, and Children's Education," SocArXiv 7rm6g, Center for Open Science.
    11. Huttunen, Kristiina & Riukula, Krista, 2019. "Parental Job Loss and Children's Careers," IZA Discussion Papers 12788, Institute of Labor Economics (IZA).
    12. Schmidpeter, Bernhard, 2020. "The Long-Term Labor Market Effects of Parental Unemployment," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224539, Verein für Socialpolitik / German Economic Association.

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