Intergenerational Transmission of Unemployment – Causal Evidence from Austria

Dominik Grübl, Mario Lackner and Rudolf Winter-Ebmer

No 2020-01, CDL Aging, Health, Labor working papers from The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria

Abstract: We estimate the causal effect of parents’ unemployment on unemployment among their children in their own adulthood. We use administrative data for Austrian children born between 1974 and 1984 and apply an instrumental variables (IV) identification strategy using parents' job loss during a mass layoff as the instrument. We find evidence of unemployment inheritance in the next generation. An additional day of unemployment during childhood causally raises the average unemployment days of the adult child by 1 to 2%. The greatest effects are observed for unmarried parents, young children, children of low-education parents, and in families living in capital cities. We also explore various channels of intergenerational unemployment, such as education, income, and job matching by parents.

Keywords: I12; I14; I18; J62. (search for similar items in EconPapers)
Pages: 28 pages
Date: 2020-03
Note: English
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Intergenerational Transmission of Unemployment - Causal Evidence from Austria (2020)
Working Paper: Intergenerational Transmission of Unemployment - Causal Evidence from Austria (2020)
Working Paper: Intergenerational Transmission of Unemployment: Causal Evidence from Austria (2020)
Working Paper: Intergenerational Transmission of Unemployment – Causal Evidence from Austria (2020)
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