Parental Proximity and Earnings after Job Displacements

Patrick Coate, Pawel Krolikowski and Mike Zabek

No 1722, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: Young adults, ages 25 to 35, who live in the same neighborhoods as their parents experience stronger earnings recoveries after a job displacement than those who live farther away. This result is driven by smaller on-impact wage reductions and sharper recoveries in both hours and wages. We show that geographic mobility, different job search durations, housing transfers, and ex-ante differences between individuals are unlikely explanations. Our findings are consistent with a framework in which some individuals living near their parents face a better wage-offer distribution, though we find no direct evidence of parental network effects.

Keywords: Parents; adult children; job loss; neighborhoods; transfers; networks (search for similar items in EconPapers)
JEL-codes: J61 J64 R23 (search for similar items in EconPapers)
Pages: 75 pages
Date: 2017-11-29
New Economics Papers: this item is included in nep-dem, nep-lab and nep-ure
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Parental proximity and earnings after job displacements (2020)
Working Paper: Parental Proximity and Earnings After Job Displacements (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwp:1722

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DOI: 10.26509/frbc-wp-201722

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