Consequences of parental job loss on the family environment and on human capital formation-Evidence from workplace closures
Eva Mörk (),
Anna Sjögren and
Helena Svaleryd
Labour Economics, 2020, vol. 67, issue C
Abstract:
We study the consequences of mothers’ and fathers’ job loss for parents, families, and children. Rich Swedish administrative data allow us to identify workplace closures and account for non-random selection of displaced workers. Our main conclusion is that effects on children are limited, although parents and families are negatively affected in terms of parental health, labour market outcomes and separations. We find no effects of parental job loss on childhood health. While educational and early adult outcomes are unaffected by paternal job loss, we find small negative effects of maternal job loss, which contradicts some of the earlier evidence. Limited effects on family disposable income suggest that welfare institutions successfully insure families, in particular, those with low income, thus protecting the family environment. A dual earner norm and strong incentives for female labour supply may contribute to the absence of positive effects of maternal job loss.
Keywords: Parental unemployment; Job loss; Family environment; Child health; Human capital formation (search for similar items in EconPapers)
JEL-codes: I12 J1 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (30)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:67:y:2020:i:c:s0927537120301159
DOI: 10.1016/j.labeco.2020.101911
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