The long-term labor market effects of parental unemployment
Bernhard Schmidpeter
No 866, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen
Abstract:
I investigate the impact of parental unemployment on children's educational attainment and long-run labor market outcomes in Austria. I find that parental unemployment shortly before an important educational decision by parents for their children lowers a child's probability of holding a university degree by more than 5 percentage points. I do not find that income is affected at the beginning of a child's labor market career along the distribution, but I find a gradual deterioration later on. A substantial share of these long-term losses can be explained by the lower parental investment decision. My results emphasize the intergenerational and longlasting consequences of parental unemployment.
Keywords: parental unemployment; intergenerational effects; long-term effects; unemployment; wage loss; decomposition (search for similar items in EconPapers)
JEL-codes: C21 I23 J13 J31 J64 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (4)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:866
DOI: 10.4419/96973003
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