"The Long-Term Labor Market Effects of Parental Unemployment" by Bernhard Schmidpeter
 

Publication Date

8-19-2020

Series

Upjohn Institute working paper ; 20-322

DOI

10.17848/wp20-322

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 long-lasting consequences of parental unemployment.

Issue Date

August 2020

Sponsorship

W.E. Upjohn Institute for Employment Research Early Career Research Award 18-156-14 and ESRC Centre on Micro-Social Change at ISER (Grant RES-518-28-001)

Subject Areas

EDUCATION; LABOR MARKET ISSUES; UNEMPLOYMENT, DISABILITY, and INCOME SUPPORT PROGRAMS

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Citation

Schmidpeter, Bernhard. 2020. "The Long-Term Labor Market Effects of Parental Unemployment." Upjohn Institute Working Paper 20-322. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. https://doi.org/10.17848/wp20-322