Parental proximity and earnings after job displacements

Pawel Krolikowski, Mike Zabek and Patrick Coate

Labour Economics, 2020, vol. 65, issue C

Abstract: The earnings of young adults living in their parents’ neighborhoods completely recover after a job displacement, while the earnings of those living farther away permanently decline. Nearby workers appear to benefit from help with childcare. Earnings improvements are larger in states with expensive childcare and among workers in inflexible occupations, and workers’ parents do less market work following their child’s displacement. Differences in job search durations, transfers of housing services, and geographic mobility are too small to explain the result. Our results are also consistent with workers benefiting from parental employment networks.

Keywords: Parents; Family ties; Adult children; Job loss; Childcare; Transfers (search for similar items in EconPapers)
JEL-codes: J61 J64 R23 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Parental Proximity and Earnings After Job Displacements (2019)
Working Paper: Parental Proximity and Earnings after Job Displacements (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:65:y:2020:i:c:s0927537120300816

DOI: 10.1016/j.labeco.2020.101877

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