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The long-term impact of family difficulties during childhood on labor market outcomes

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  • Emanuele Millemaci
  • Dario Sciulli

Abstract

The literature on child development shows that the promotion of cognitive and non-cognitive skills is essential to prevent inequalities in adult socioeconomic outcomes. In this context, the family environment plays a strategic role, as during childhood, it represents the most important institution for child development. This paper evaluates the long-term impact of various family difficulties during childhood on adult labor market outcomes. Evidence of negative impacts on employment probability and wages emerges from applying propensity score matching to the UK National Child Development Study. Simulation-based sensitivity analysis and standard parametric techniques support our findings. We also find that the intensity of the negative impact appears to increase with the number of recorded family difficulties, while the negative effect does not decline over the cohort’s working life. Moreover, we find that housing and economic (financial and unemployment) problems are responsible for the more serious disadvantages, while disabilities of family members and familial disharmony do not produce statistically negative impacts per se but tend to do so only if associated with other family difficulties, including economic and housing difficulties. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Emanuele Millemaci & Dario Sciulli, 2014. "The long-term impact of family difficulties during childhood on labor market outcomes," Review of Economics of the Household, Springer, vol. 12(4), pages 663-687, December.
    • Handle: RePEc:kap:reveho:v:12:y:2014:i:4:p:663-687
    DOI: 10.1007/s11150-013-9187-8
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    2. Sciulli, Dario, 2016. "Adult employment probabilities of socially maladjusted children," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 60(C), pages 9-22.

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    More about this item

    Keywords

    Family difficulties; Childhood; Propensity score matching; Labor market outcomes; Causal effects; J12; J13; C21;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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