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Parental Job Loss and Children's Careers

Kristiina Huttunen () and Krista Riukula ()
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Krista Riukula: Aalto University

No 12788, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the effect of parental job loss on children's outcomes using administrative data from Finland. We focus on two channels through which parental job loss can affect children's careers: 1) by affecting the child's field of study choices and 2) by weakening social ties to the labor market. We find evidence supporting both mechanisms: a father's job loss decreases the likelihood of the child choosing the father's field of study or finding employment in the father's plant. Children of displaced fathers have lower earnings; however, we find no effects on the outcomes measured before the study choices are made.

Keywords: education; social ties; study field; childhood income; job loss; earnings (search for similar items in EconPapers)
JEL-codes: I24 J24 J63 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2019-11
New Economics Papers: this item is included in nep-lma
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