The Effect of the Loss of a Parent on the Future Earnings of a Minor Child

John Kane (), Lawrence Spizman, James Rodgers () and Rick R Gaskins ()
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James Rodgers: The Pennsylvania State University, 237 Timberton Circle, Bellefonte, PA 16823-9070, USA.
Rick R Gaskins: Gaskins Associates, PC, P.O. Box 326, Monkton, MD 21111-0326, USA.

Eastern Economic Journal, 2010, vol. 36, issue 3, 370-390

Abstract: We quantify the effect of a parent's absence on a child's future earnings. A parent's absence because of separation or divorce reduces a child's lifetime earnings between 3 and 12 percent. Lifetime educational attainment is adversely affected by between 2 and 4 percent if a parent of the same gender as the child dies (a smaller impact than if absence is because of separation or divorce). No such adverse effect is found if a girl's father or a boy's mother dies. We conclude that it is sensible that lifetime earnings loss to children not be estimated in a parent's wrongful death case.

Date: 2010
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