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The causal effect of family difficulties during childhood on adult labour market outcomes

Emanuele Millemaci and Dario Sciulli ()

No 203, CEIS Research Paper from Tor Vergata University, CEIS

Abstract: A propensity score matching approach and the National Child Development Study cohort database are used to evaluate the total causal effect of family difficulties during childhood on adult labour market outcomes. We find statistically significant evidence of a negative and long-lasting impact on employment probabilities and wages. Our estimates suggest that the occurrence of family problems in childhood reduces the chances of being employed by about 6 % and employees’ hourly wages by about 8.4 percent. Moreover, this effect appears not to decline over the cohort working life. Looking at specific family difficulties, we find that economic difficulties determine the greatest disadvantages in terms of future labour market outcomes. These results are consistent with respect to estimations with standard parametric methods. Economic and social policies aimed to prevent poor labour market performances, and possibly consequent social exclusion and immobility in adulthood, should also take into account the role of the various factors affecting family environment during childhood.

Keywords: family difficulties; childhood; propensity score matching; labour market outcomes; causal effects (search for similar items in EconPapers)
JEL-codes: C21 J12 J13 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2011-06-30, Revised 2011-06-30
New Economics Papers: this item is included in nep-lab and nep-lma
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Working Paper: The causal effect of family difficulties during childhood on adult labour market outcomes (2011) Downloads
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