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Extracting the causal component from the intergenerational correlation in unemployment

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  • Ekhaugen, Tyra

    () (The Ragnar Frisch Centre for Economic Research)

Abstract

This paper examines the intergenerational correlation in unemployment in Norway and, by use of the sibling-difference method, separates that correlation into its causal and non-causal parts. Detailed register data covering the entire Norwegian population provide the long panel of data this method requires, and allow experimentation with different definitions of parental unemployment. Confirming existing evidence, I find a substantial intergenerational correlation in unemployment. Approximately half of this is due to observed family heterogeneity. The estimated causal effect is non-significantly negative for all measures of parental unemployment.

Suggested Citation

  • Ekhaugen, Tyra, 2005. "Extracting the causal component from the intergenerational correlation in unemployment," Memorandum 21/2005, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2005_021
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2005/Memo-21-2005.pdf
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    References listed on IDEAS

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    1. O'Neill, Donal & Sweetman, Olive, 1998. "Intergenerational Mobility in Britain: Evidence from Unemployment Patterns," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(4), pages 431-447, November.
    2. Corak, Miles & Gustafsson, Björn Anders & Österberg, Torun, 2000. "Intergenerational Influences on the Receipt of Unemployment Insurance in Canada and Sweden," IZA Discussion Papers 184, Institute for the Study of Labor (IZA).
    3. John Ermisch & Marco Francesconi & David J. Pevalin, 2004. "Parental partnership and joblessness in childhood and their influence on young people's outcomes," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 167(1), pages 69-101.
    4. Raaum, Oddbjørn & Rogstad, Jon & Røed, Knut & Westlie, Lars, 2009. "Young and out: An application of a prospects-based concept of social exclusion," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 173-187, January.
    5. Gottschalk, Peter, 1996. "Is the correlation in welfare participation across generations spurious?," Journal of Public Economics, Elsevier, pages 1-25.
    6. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, pages 1829-1878.
    7. Hanushek, Eric A, 1992. "The Trade-Off between Child Quantity and Quality," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 84-117, February.
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    9. John F. Ermisch & Marco Francesconi, 2001. "Family structure and children's achievements," Journal of Population Economics, Springer;European Society for Population Economics, pages 249-270.
    10. Gottschalk, Peter, 1996. "Is the correlation in welfare participation across generations spurious?," Journal of Public Economics, Elsevier, pages 1-25.
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    Cited by:

    1. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.

    More about this item

    Keywords

    Intergenerational mobility; unemployment; sibling estimators;

    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

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