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The Impact of Fathers’ Job Loss during the 1980s Recession on their Child’s Educational Attainment and Labour Market Outcomes

Paul Gregg, Lindsey Macmillan (l.macmillan@ucl.ac.uk) and Bilal Nasim

The Centre for Market and Public Organisation from The Centre for Market and Public Organisation, University of Bristol, UK

Abstract: The research on intergenerational correlations in outcomes is increasingly moving from measurement into assessment of causal transmission mechanisms. This paper analyses the causal impact of fathers’ job loss on their children’s educational attainment and later economic outcomes. To do so, we isolate the effect of job loss associated with major industry contractions, mainly in manufacturing, during the 1980s recession by mapping industry level employment change data from 1980 to 1983 into the British Cohort Study (BCS). Children with fathers’ who were identified as being displaced did significantly worse in terms of their GCSE attainment than those from non-displaced families. A child with a displaced father obtained on average 17 grade points lower or half a GCSE grade A-C less than their otherwise identical counterparts, the equivalent of 2.2% lower wages as an adult.

Keywords: Intergenerational mobility; unemployment; children; education; job displacement (search for similar items in EconPapers)
JEL-codes: J13 J31 J62 J64 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2012-04
References: Add references at CitEc
Citations: View citations in EconPapers (33)

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