Extracting the causal component from the intergenerational correlation in unemployment

Tyra Ekhaugen ()
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Tyra Ekhaugen: The Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, 0349 Oslo, Norway

No 21/2005, Memorandum from Oslo University, Department of Economics

Abstract: This paper examines the intergenerational correlation in unemployment in Norway and, by use of the sibling-difference method, separates that correlation into its causal and non-causal parts. Detailed register data covering the entire Norwegian population provide the long panel of data this method requires, and allow experimentation with different definitions of parental unemployment. Confirming existing evidence, I find a substantial intergenerational correlation in unemployment. Approximately half of this is due to observed family heterogeneity. The estimated causal effect is non-significantly negative for all measures of parental unemployment.

Keywords: Intergenerational mobility; unemployment; sibling estimators (search for similar items in EconPapers)
JEL-codes: J62 J64 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2005-10-04
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Citations: View citations in EconPapers (1)

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