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Born under the Bad Sign: Intergenerational Effects of the Finnish Great Depression of the Early 1990s

Author

Listed:
  • Mangyo, Eiji

    (Nagoya University)

  • Haapanen, Mika

    (University of Jyväskylä)

  • Böckerman, Petri

    (University of Jyväskylä)

Abstract

This paper investigates the effect of a major economic recession on the educational attainment of the next generation. Our analysis is based on nationwide longitudinal registry data on Finland. We focus on the heterogenous effects of the recession on households of different socioeconomic statuses. We find that the effects of the early 1990s recession on the educational attainment of the next generation were more severe for children with nontertiary-educated parents than those with tertiary-educated parents, implying that the recession aggravated the pattern of societal inequality in Finland. Importantly, the deterioration of the home environment was the primary mechanism through which the recession adversely affected the educational attainment of the next generation.

Suggested Citation

  • Mangyo, Eiji & Haapanen, Mika & Böckerman, Petri, 2024. "Born under the Bad Sign: Intergenerational Effects of the Finnish Great Depression of the Early 1990s," IZA Discussion Papers 16750, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16750
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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