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Trick or Treat?: Maternal Involuntary Job Loss and Children's Non-cognitive Skills

  • Frauke H. Peter

Negative effects of job loss on adults such as considerable fall in income have long been examined. If job loss has negative consequences for adults, it may spread to their children. But potential effects on children's non-cognitive skills and the related mechanisms have been less examined. This paper uses propensity score matching to analyze maternal involuntary job loss and its potential causal effect on children's non-cognitive skills. Job loss is defined as end of employment either due to plant closure or due to dismissals by employer. Using a rich and representative data set, the German Socio-Economic Panel Study (SOEP), I estimate associations of maternal job loss on child outcomes for preschool children aged five/six and for adolescents aged seventeen. The paper analyses influences on children's socio-emotional behavior and on adolescents' locus of control. The obtained results show that children whose mothers experience an involuntary job loss are more likely to have behavioral problems and are less likely to believe in self-determination.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1297.

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Length: 40 p.
Date of creation: 2013
Date of revision:
Handle: RePEc:diw:diwwpp:dp1297
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  1. Charles L. Baum II, 2003. "Does Early Maternal Employment Harm Child Development? An Analysis of the Potential Benefits of Leave Taking," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 381-408, April.
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  18. Thomas Siedler & JÜrgen Schupp & C. Katharina Spiess & Gert G. Wagner, 2009. "The German Socio-Economic Panel (SOEP) as Reference Data Set," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(2), pages 367-374.
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  20. Rajeev H. Dehejia & Sadek Wahba, 1998. "Propensity Score Matching Methods for Non-experimental Causal Studies," NBER Working Papers 6829, National Bureau of Economic Research, Inc.
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  24. repec:oup:restud:v:64:y:1997:i:4:p:605-54 is not listed on IDEAS
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