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The causal effect of family difficulties during childhood on adult labour market outcomes

  • Millemaci, Emanuele
  • Sciulli, Dario

Applying a propensity score matching approach to UK National Child Development Study, we find that experiencing family difficulties during childhood determines a negative and long-lasting impact on adult employment probabilities and wage. Standard econometric techniques and simulation based sensitivity analysis support our findings. The intensity of the disadvantage appears to increase with the number of recorded family difficulties. Moreover, we find that housing and economic problems are responsible for the more serious disadvantage, while disability of family members and disharmony act statistically significantly only if associated with other problems. Finally, the effect appears not to decline over the cohort working life.

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File URL: http://mpra.ub.uni-muenchen.de/29026/1/MPRA_paper_29026.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29026.

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Date of creation: 27 Jan 2011
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Handle: RePEc:pra:mprapa:29026
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