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The Impact of Fathers’ Job Loss during the 1980s Recession on their Child’s Educational Attainment and Labour Market Outcomes

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  • Paul Gregg
  • Lindsay Macmillan
  • Bilal Nasim

Abstract

The research on intergenerational correlations in outcomes is increasingly moving from measurement into assessment of causal transmission mechanisms. This paper analyses the causal impact of fathers’ job loss on their children’s educational attainment and later economic outcomes. To do so, we isolate the effect of job loss associated with major industry contractions, mainly in manufacturing, during the 1980s recession by mapping industry level employment change data from 1980 to 1983 into the British Cohort Study (BCS). Children with fathers’ who were identified as being displaced did significantly worse in terms of their GCSE attainment than those from non-displaced families. A child with a displaced father obtained on average 17 grade points lower or half a GCSE grade A-C less than their otherwise identical counterparts, the equivalent of 2.2% lower wages as an adult.

Suggested Citation

  • Paul Gregg & Lindsay Macmillan & Bilal Nasim, 2012. "The Impact of Fathers’ Job Loss during the 1980s Recession on their Child’s Educational Attainment and Labour Market Outcomes," The Centre for Market and Public Organisation 12/288, The Centre for Market and Public Organisation, University of Bristol, UK.
    • Handle: RePEc:bri:cmpowp:12/288
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    File URL: http://www.bristol.ac.uk/cmpo/publications/papers/2012/wp288.pdf
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    References listed on IDEAS

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    1. Jo Blanden & Paul Gregg & Lindsey Macmillan, 2007. "Accounting for Intergenerational Income Persistence: Noncognitive Skills, Ability and Education," Economic Journal, Royal Economic Society, vol. 117(519), pages 43-60, March.
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    More about this item

    Keywords

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    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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