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Paternal Unemployment During Childhood: Causal Effects on Youth Worklessness and Educational Attainment

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  • Müller, Steffen
  • Riphahn, Regina T.
  • Schwientek, Caroline

Abstract

Using long-running data from the German Socio-Economic Panel (1984-2012), we investigate the impact of paternal unemployment on child labor market and education outcomes. We first describe correlation patterns and then use sibling fixed effects and the Gottschalk (1996) method to identify the causal effects of paternal unemployment. We find different patterns for sons and daughters. Paternal unemployment does not seem to causally affect the outcomes of sons. In contrast, it increases both daughters' worklessness and educational attainment. We test the robustness of the results and explore potential explanations.

Suggested Citation

  • Müller, Steffen & Riphahn, Regina T. & Schwientek, Caroline, 2016. "Paternal Unemployment During Childhood: Causal Effects on Youth Worklessness and Educational Attainment," IWH Discussion Papers 8/2016, Halle Institute for Economic Research (IWH).
  • Handle: RePEc:zbw:iwhdps:iwh-8-16
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    References listed on IDEAS

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    Cited by:

    1. Grübl, Dominik & Lackner, Mario & Winter-Ebmer, Rudolf, 2020. "Intergenerational Transmission of Unemployment - Causal Evidence from Austria," IHS Working Paper Series 14, Institute for Advanced Studies.
    2. Kristina Lindemann & Markus Gangl, 2018. "Parental Unemployment and the Transition into Tertiary Education: Can Institutions Moderate the Adverse Effects?," SOEPpapers on Multidisciplinary Panel Data Research 972, DIW Berlin, The German Socio-Economic Panel (SOEP).

    More about this item

    Keywords

    youth unemployment; educational attainment; intergenerational mobility; causal effect; Gottschalk method; sibling fixed effects;

    JEL classification:

    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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