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Parental proximity and earnings after job displacements

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  • Krolikowski, Pawel
  • Zabek, Mike
  • Coate, Patrick

Abstract

The earnings of young adults living in their parents’ neighborhoods completely recover after a job displacement, while the earnings of those living farther away permanently decline. Nearby workers appear to benefit from help with childcare. Earnings improvements are larger in states with expensive childcare and among workers in inflexible occupations, and workers’ parents do less market work following their child’s displacement. Differences in job search durations, transfers of housing services, and geographic mobility are too small to explain the result. Our results are also consistent with workers benefiting from parental employment networks.

Suggested Citation

  • Krolikowski, Pawel & Zabek, Mike & Coate, Patrick, 2020. "Parental proximity and earnings after job displacements," Labour Economics, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:labeco:v:65:y:2020:i:c:s0927537120300816
    DOI: 10.1016/j.labeco.2020.101877
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    Cited by:

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    5. Gihleb, Rania & Giuntella, Osea & Lonsky, Jakub, 2023. "Dreaming of leaving the nest? Immigration status and the living arrangements of DACAmented," European Economic Review, Elsevier, vol. 156(C).
    6. Katherine Lim & Mike Zabek, 2024. "Women’s Labor Force Exits During COVID-19: Differences by Motherhood, Race, and Ethnicity," Journal of Family and Economic Issues, Springer, vol. 45(3), pages 504-527, September.
    7. Carolina Aragao & Aida Villanueva, 2021. "How do mothers work? Kin coresidence and mothers' work in Latin America," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 45(30), pages 917-956.
    8. Chan, Sewin & O'Regan, Katherine & You, Wei, 2021. "Migration choices of the boomerang generation: Does returning home dampen labor market adjustment?," Journal of Housing Economics, Elsevier, vol. 53(C).
    9. Dicks, Alexander & Levels, Mark & van der Velden, Rolf & Mills, Melinda C., 2022. "How Young Mothers Rely on Kin Networks and Formal Childcare to Avoid Becoming NEET in the Netherlands," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 6, pages 1-1.

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    More about this item

    Keywords

    Parents; Family ties; Adult children; Job loss; Childcare; Transfers;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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