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Unexpected Victims: How Parents' Unemployment Affects Their Children's Life Satisfaction

Author

Listed:
  • Michael Kind

    (Ruhr Graduate School in Economics, Essen)

  • John P. Haisken-DeNew

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

The effects of unemployment on the subjective wellbeing (SWB) of the unemployed on the unemployed are well documented. Using data from the German SOEP for 17-25 year olds living with their parents, this paper examines the additional indirect effects of parents’ unemployment on their children’s subjective wellbeing in an attempt to capture the full impact of unemployment. The reason for entry (exogenous versus endogenous) into unemployment plays a major role. Fathers who enter unemployment exogenously affect their son’s SWB negatively, as do mothers who enter into unemployment endogenously. Parental unemployment has no impact on daughters’ SWB.

Suggested Citation

  • Michael Kind & John P. Haisken-DeNew, 2012. "Unexpected Victims: How Parents' Unemployment Affects Their Children's Life Satisfaction," Melbourne Institute Working Paper Series wp2012n02, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2012n02
    as

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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2012n02.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Life satisfaction; unemployment; intergenerational transmission;
    All these keywords.

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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