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Job losses and child outcomes

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Abstract

Based on matched employer-employee data from Norway, we analyze the effects of worker displacement in 1986-1987 on their children’s earnings in 1999-2001. Using displacement of fathers to indicate an exogenous earnings shock we seek to identify whether family resources have a direct effect on children’s economic outcome. As in previous Scandinavian studies, we find the intergenerational earnings mobility to be fairly high compared to the U.S. and the U.K. Job losses appear to have a negative effect on earnings and employment of those affected, while we find no significant effects on offspring.

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  • Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2007. "Job losses and child outcomes," Working Papers in Economics 07/07, University of Bergen, Department of Economics.
  • Handle: RePEc:hhs:bergec:2007_007
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    1. Espen Bratberg & Oivind Anti Nilsen & Kjell Vaage, 2005. "Intergenerational Earnings Mobility in Norway: Levels and Trends," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 419-435, September.
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    Cited by:

    1. Steffen Mueller & Regina T. Riphahn & Caroline Schwientek, 2014. "Paternal unemployment during childhood: causal effects on youth worklessness and educational attainment," Working Papers 157, Bavarian Graduate Program in Economics (BGPE).
    2. Mäder Miriam & Schwientek Caroline & Riphahn Regina T. & Müller Steffen, 2015. "Intergenerational Transmission of Unemployment – Evidence for German Sons," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 355-375, August.
    3. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, Elsevier.
    4. Neel Rao, 2016. "The Impact Of Macroeconomic Conditions In Childhood On Adult Labor Market Outcomes," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1425-1444, July.
    5. Boll, Christina & Hoffmann, Malte, 2015. "It's not all about parents' education, it also matters what they do: Parents' employment and children's school success in Germany," HWWI Research Papers 162, Hamburg Institute of International Economics (HWWI).
    6. Coelli, Michael B., 2011. "Parental job loss and the education enrollment of youth," Labour Economics, Elsevier, vol. 18(1), pages 25-35, January.
    7. Wölfel, Oliver & Heineck, Guido, 2012. "Parental risk attitudes and children's secondary school track choice," Economics of Education Review, Elsevier, vol. 31(5), pages 727-743.
    8. Frauke H. Peter, 2013. "Trick or Treat?: Maternal Involuntary Job Loss and Children's Non-cognitive Skills," Discussion Papers of DIW Berlin 1297, DIW Berlin, German Institute for Economic Research.
    9. Gabriella Berloffa & Eleonora Matteazzi & Paola Villa, 2016. "Family background and youth labour market outcomes across Europe," Working Papers 393, ECINEQ, Society for the Study of Economic Inequality.
    10. Michael B Coelli, 2009. "Parental Job Loss, Income Shocks and the Education Enrolment of Youth," Department of Economics - Working Papers Series 1060, The University of Melbourne.
    11. Michele Di Maio & Roberto Nisticò, 2016. "The Effect of Parental Job Loss on Child School Dropout: Evidence from the Occupied Palestinian Territories," CSEF Working Papers 456, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 06 Feb 2018.
    12. Kleverbeck, Maria & Kind, Michael, 2015. "Does parental unemployment affect the quality of their children's first job?," Ruhr Economic Papers 596, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    More about this item

    Keywords

    Displacement; intergenerational earnings correlations.;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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