Early Labor Market Prospects and Family Formation

Mattias Engdahl, Mathilde Godard and Oskar Skans
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Mattias Engdahl: Institute for Labour Market Policy Evaluation (IFAU) - Institute for Labour Market Policy Evaluation (IFAU)

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Abstract: Using quasi-random variation in graduation years of Swedish vocational high-school females at the sudden onset of a deep national recession, we study how deteriorated early labor-market prospects affected economic and family outcomes during the following decades. Labor-market consequences were severe but not permanent. In contrast, family outcomes were permanently altered, in particular for low-GPA women. These women married and had children earlier, and they partnered with lower-performing spouses. Divorce and single-motherhood rates rose, and welfare-claims remained elevated for decades. This suggests that temporary shocks to female labor market prospects can propagate into long-run poverty through endogenous adjustments of marriage-quality thresholds.

Keywords: Family formation; female labor supply; cost of recessions (search for similar items in EconPapers)
Date: 2022-04
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Published in The journal of human resources, 2022, 57 (3)

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Related works:
Journal Article: Early Labor Market Prospects and Family Formation (2024)
Working Paper: Early Labor Market Prospects and Family Formation (2020)
Working Paper: Early Labor Market prospects and family formation (2020)
Working Paper: Early Labor Market prospects and family formation (2020)
Working Paper: Early Labor Market Prospects and Family Formation (2019)
Working Paper: Early Labor Market Prospects and Family Formation (2018)
Working Paper: Early labor market prospects and family formation (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03689766

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