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Intergenerational Transmission of Unemployment: Evidence for German Sons

Author

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  • Mäder, Miriam

    () (University of Erlangen-Nuremberg)

  • Müller, Steffen

    () (IWH Halle)

  • Riphahn, Regina T.

    () (University of Erlangen-Nuremberg)

  • Schwientek, Caroline

    () (University of Erlangen-Nuremberg)

Abstract

This paper studies the association between the unemployment experience of fathers and their sons. Based on German survey data that cover the last decades we find significant positive correlations. Using instrumental variables estimation and the Gottschalk (1996) method we investigate to what extent fathers' unemployment is causal for offspring's employment outcomes. In agreement with most of the small international literature we do not find a positive causal effect for intergenerational unemployment transmission. This outcome is robust to alternative data structures and to tests at the intensive and extensive margin of unemployment.

Suggested Citation

  • Mäder, Miriam & Müller, Steffen & Riphahn, Regina T. & Schwientek, Caroline, 2014. "Intergenerational Transmission of Unemployment: Evidence for German Sons," IZA Discussion Papers 8513, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8513
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    References listed on IDEAS

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    1. Johnson, Paul & Reed, Howard, 1996. "Intergenerational Mobility among the Rich and Poor: Results from the National Child Development Survey," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 127-142, Spring.
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    3. Philipp Bauer & Regina Riphahn, 2007. "Heterogeneity in the intergenerational transmission of educational attainment: evidence from Switzerland on natives and second-generation immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(1), pages 121-148, February.
    4. 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.
    5. Heineck Guido & Riphahn Regina T., 2009. "Intergenerational Transmission of Educational Attainment in Germany – The Last Five Decades," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(1), pages 36-60, February.
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    10. Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2008. "Job losses and child outcomes," Labour Economics, Elsevier, vol. 15(4), pages 591-603, August.
    11. Schnitzlein, Daniel D., 2014. "How Important Is the Family? Evidence from Sibling Correlations in Permanent Earnings in the USA, Germany, and Denmark," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 69-89.
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    Citations

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    Cited by:

    1. Steffen Müller & Regina T. Riphahn & Caroline Schwientek, 2017. "Paternal unemployment during childhood: causal effects on youth worklessness and educational attainment," Oxford Economic Papers, Oxford University Press, vol. 69(1), pages 213-238.
    2. Holtemöller, Oliver & Lindner, Axel, 2018. "Die wirtschaftliche Entwicklung Sachsen-Anhalts seit 1990," IWH Discussion Papers 6/2018, Halle Institute for Economic Research (IWH).
    3. 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.
    4. 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.
    5. Fitzenberger Bernd & Gürtzgen Nicole & Pfeiffer Friedhelm, 2015. "Guest Editorial," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 352-354, August.

    More about this item

    Keywords

    Gottschalk method; causal effect; intergenerational mobility; non-employment; youth unemployment;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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