Upjohn Institute working paper ; 20-322
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.
Support by the ESRC Centre on Micro-Social Change at ISER (Grant RES-518-28-001) and the Upjohn Institute Early Career Research Award are gratefully acknowledged.
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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