Intergenerational effects of employment protection reforms
Labour Economics, 2020, vol. 62, issue C
Job insecurity has worsened in most OECD countries in the aftermath of the Great Recession. Using Labour Force Survey data, I estimate the link between parental job insecurity (as measured by the contract type held by parents) and children’s school related outcomes. Endogeneity issues affecting the type of contract held by parents are dealt with by constructing an instrument based on regional, time and demographic variation in the amount of wage subsidies available to firms to convert fixed-term contracts into permanent ones in Spain. The findings suggest that children whose fathers are less job insecure are considerably more likely to graduate from compulsory education on time. They are also less likely to drop out of the education system and be classified as Not in Education, Employment or Training at age sixteen. Employment protection reforms that liberalise the use of fixed-term contracts and do not take into account these negative externalities on other members of the household are therefore understating their overall cost.
Keywords: Employment protection; Fixed-term contracts; Job insecurity; Intergenerational impacts; School outcomes (search for similar items in EconPapers)
JEL-codes: I20 I24 J65 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:62:y:2020:i:c:s0927537119301101
Access Statistics for this article
Labour Economics is currently edited by A. Ichino
More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().