Early Life Circumstances and Life Cycle Labor Market Outcomes
We investigate how early life circumstances—childhood health and socioeconomic status (SES)—are associated with labor market outcomes over an individual’s entire life cycle. A life cycle approach provides insights not only into which labor market outcomes are associated with adverse childhood events but also into whether these associations show up early or only later in working life, and whether they vanish or persist over the life cycle. The analysis is conducted using the Survey of Health, Aging and Retirement in Europe, which contains retrospective information on early life circumstances and full work histories for over 20,000 individuals in thirteen European countries. We find that the associations between early life circumstances and (accumulated) labor market outcomes vary over an individual’s life cycle. For men and women, the effect of childhood SES on lifetime earnings accumulates over the life cycle through the associations with both working years and annual earnings. Moreover, for men this association with lifetime earnings reverses sign from negative to positive over their working life. We also find a smaller, positive long-term association between childhood health and lifetime earnings operating mainly through annual earnings and only to a lesser extent through working years, and which is not present at the beginning of the working life for women. Most of these life cycle profiles differ between European country-groups. Finally, for women we find a so-called buffering effect, i.e. that a higher parental SES reduces the negative impact of poor health during childhood on accumulated earnings over the life cycle.
|Date of creation:||06 Aug 2015|
|Contact details of provider:|| Postal: Gustav Mahlerplein 117, 1082 MS Amsterdam|
Phone: +31 (0)20 598 4580
Web page: http://www.tinbergen.nl/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cavapozzi, Danilo & Garrouste, Christelle & Paccagnella, Omar, 2010. "Childhood, Schooling and Income Inequality," MPRA Paper 28729, University Library of Munich, Germany.
- Alessie, Rob & Angelini, Viola & van Santen, Peter, 2013.
"Pension wealth and household savings in Europe: Evidence from SHARELIFE,"
European Economic Review,
Elsevier, vol. 63(C), pages 308-328.
- Alessie, Rob & Angelini, Viola & van Santen, Peter, 2013. "Pension Wealth and Household Savings in Europe: Evidence from SHARELIFE," Working Paper Series 265, Sveriges Riksbank (Central Bank of Sweden).
- Alessie, R.J.M. & Angelini, V. & van Santen, P.C., 2012. "Pension wealth and household savings in Europe," Research Report 12012-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
When requesting a correction, please mention this item's handle: RePEc:tin:wpaper:20150094. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tinbergen Office +31 (0)10-4088900)
If references are entirely missing, you can add them using this form.