Parental Job Loss, Secondary School Completion and Home Environment

Tamás Hajdu, Gabor Kertesi and Gabor Kezdi

Acta Oeconomica, 2019, vol. 69, issue 3, 393-423

Abstract: This study examines the effect of parental job loss on adolescents’ school completion during the secondary school years and the moderating role of home environment in that effect. It uses rich survey data from Hungary on adolescents between 14 and 21 years of age, with detailed measures of parental employment and home environment. The study replicates the average negative effect found in the literature. No effect is found for families with a history of providing a cognitively stimulating home environment, but the negative effect is strong for other families. Home environment matters more than initial income in moderating the effect. The results highlight the protective nature of a cognitively stimulating home environment.

Keywords: job loss; home environment; school completion (search for similar items in EconPapers)
JEL-codes: I20 J60 (search for similar items in EconPapers)
Date: 2019
Note: We thank Dániel Horn and István György Tóth as well as participants of the annual conference of Magyar Közgazdaságtudományi Egyesület (Hungarian Society of Economics) for their thoughtful comments. Melinda Tir provided excellent research assistantship. This work was supported by the National Research, Development and Innovation Office of Hungary (Grant No. NKFI-116354) and the Horizon 2020 Twinning project EdEN (Grant No. 691676).
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Working Paper: Parental Job Loss, Secondary School Completion and Home Environment (2017)
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