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Parental job loss and early child development in the Great Recession

Gabriele Mari and Renske Keizer

No 2596e, SocArXiv from Center for Open Science

Abstract: Parental job loss may stifle early child development, and this might help explain why children of displaced parents fare worse later in life. To investigate this, the study relies on Irish cohort data (N = 6,303) collected around the Great Recession. A novel approach to mediation analysis is deployed, assessing predictions derived from models of family investment and family stress. Parental job loss is found to exacerbate problem behaviour at age 3 and 5, via the channels of parental income and maternal negative parenting. By depressing parental income, job loss also hampers children's verbal ability at age 3. This is tied to reduced affordability of formal childcare, highlighting a policy lever that might tame the intergenerational toll of job loss.

Date: 2020-04-21
New Economics Papers: this item is included in nep-gen
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DOI: 10.31219/

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