The Long-Term Labor Market Effects of Parental Unemployment

Bernhard Schmidpeter

VfS Annual Conference 2020 (Virtual Conference): Gender Economics from Verein für Socialpolitik / German Economic Association

Abstract: I investigate the impact of parental unemployment on children's educational attainment and long-run labor market outcomes in Austria. I find that parental unemployment shortly before an important educational decision by parents for their children lowers a child's probability of holding a university degree by more than 5 percentage points. I do not find that income is affected at the beginning of a child's labor market career along the distribution but find a gradual deterioration later on. A substantial share of these long-term losses can be explained by the lower parental investment decision. My results emphasize the intergenerational and long-lasting consequences of parental unemployment.

Keywords: Parental Unemployment; Intergenerational Effects; Long-Term Effects; Unemployment; Wage Loss; Decomposition (search for similar items in EconPapers)
JEL-codes: C21 I23 J13 J31 J64 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc20:224539

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