When It Hurts the Most: Timing of Parental Job Loss and a Child's Education

Paul Bingley (), Lorenzo Cappellari and Marco Ovidi
Additional contact information
Paul Bingley: VIVE - The Danish Centre for Applied Social Science

No 16367, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We investigate the stages of childhood at which parental job loss is most consequential for their child's education. Using Danish administrative data linking parents experiencing plant closures to their children, we compare end-of-school outcomes to matched peers and to closures hitting after school completion age. Parental job loss disproportionally reduces test taking, scores, and high school enrolment among children exposed during infancy (age 0-1). Effects are largest for low-income families and low-achieving children. The causal chain from job loss to education likely works through reduced family income. Maternal time investment partially offsets the effect of reduced income.

Keywords: parental labor market shocks; intergenerational mobility; child development (search for similar items in EconPapers)
JEL-codes: D10 I24 J13 (search for similar items in EconPapers)
Pages: 79 pages
Date: 2023-08
New Economics Papers: this item is included in nep-dem, nep-edu, nep-eur, nep-lab, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: When it hurts the most: timing of parental job loss and a child’s education (2023)
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