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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
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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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    Cited by:

    1. repec:zbw:rwirep:0375 is not listed on IDEAS
    2. Milena Nikolova & Sinem Ayhan, 2016. "Your Spouse Is Fired! How Much Do You Care?," SOEPpapers on Multidisciplinary Panel Data Research 891, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. repec:zbw:rwirep:0514 is not listed on IDEAS
    4. Michael Kind & John P. Haisken-DeNew, 2012. "Sons' Unexpected Long Term Scarring Due to Fathers' Unemployment," Melbourne Institute Working Paper Series wp2012n21, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    5. repec:zbw:rwirep:0423 is not listed on IDEAS
    6. Wunder, Christoph & Heineck, Guido, 2013. "Working time preferences, hours mismatch and well-being of couples: Are there spillovers?," Labour Economics, Elsevier, vol. 24(C), pages 244-252.
    7. Kleibrink, Jan, 2014. "Sick of your Job? – Negative Health Effects from Non-Optimal Employment," Ruhr Economic Papers 514, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Viola Angelini & Marco Bertoni & Luca Corazzini, 2015. "The Causal Effect of Paternal Unemployment on Children's Personality," SOEPpapers on Multidisciplinary Panel Data Research 795, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. repec:spr:izalbr:v:6:y:2017:i:1:d:10.1186_s40172-017-0056-1 is not listed on IDEAS
    10. Melisa Bubonya & Deborah A. Cobb-Clark & Mark Wooden, 2014. "A Family Affair: Job Loss and the Mental Health of Spouses and Adolescents," Melbourne Institute Working Paper Series wp2014n23, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    11. John P. Haisken-DeNew & Jan Kleibrink, 2013. "Walking Wounded – The Causal Welfare Loss of Underemployment through Overeducation," Ruhr Economic Papers 0423, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    12. Michael Kind & John P. Haisken-DeNew, 2012. "Sons‘ Unexpected Long Term Scarring due to Fathers‘ Unemployment," Ruhr Economic Papers 0375, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    13. Frasquilho, Diana & de Matos, Margarida Gaspar & Gaspar, Tânia & Caldas de Almeida, J.M., 2016. "Young people's well-being and the economic crisis: How does parental unemployment and family wealth affect the downturn experience?," Children and Youth Services Review, Elsevier, vol. 69(C), pages 219-222.
    14. 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.
    15. Bruce Headey & Ruud Muffels & Gert Wagner, 2014. "Parents Transmit Happiness Along with Associated Values and Behaviors to Their Children: A Lifelong Happiness Dividend?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(3), pages 909-933, May.
    16. Powdthavee, Nattavudh & Vernoit, James, 2012. "The transferable scars: a longitudinal evidence of psychological impact of past parental unemployment on adolescents in the United Kingdom," LSE Research Online Documents on Economics 51510, London School of Economics and Political Science, LSE Library.
    17. Haisken-DeNew, John P. & Kleibrink, Jan, 2013. "Walking Wounded – The Causal Welfare Loss of Underemployment through Overeducation," Ruhr Economic Papers 423, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    18. Jan Kleibrink, 2014. "Sick of your Job? – Negative Health Effects from Non-Optimal Employment," Ruhr Economic Papers 0514, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. Powdthavee, Nattavudh & Vernoit, James, 2013. "Parental unemployment and children's happiness: A longitudinal study of young people's well-being in unemployed households," Labour Economics, Elsevier, vol. 24(C), pages 253-263.
    20. Kind, Michael, 2015. "Start me up: How fathers' unemployment affects their sons' school-to-work transitions," Ruhr Economic Papers 583, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    More about this item

    Keywords

    Life satisfaction; unemployment; intergenerational transmission;

    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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