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The Intergenerational Transmission of Worklessness in the UK

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  • Lindsey Macmillan

Abstract

This research analyses the magnitude of the intergenerational correlation in worklessness in the UK using the two British birth cohorts. By using the British Cohort Study of those born in 1970, the magnitude of the intergenerational correlation of worklessness can be assessed for a new cohort for the first time in the UK and the trend in intergenerational worklessness can be considered across time. Two empirical identification strategies commonly used in the literature are applied to UK data and a third empirical strategy, utilising the recession of 1981 is introduced to attempt to identify causality. The intergenerational correlation in worklessness in the UK is large and has increased across time, although the differences in the coefficients are not statistically significant. When a more restrictive measure of sons’ worklessness is introduced, this difference becomes statistically significant. This suggests supportive evidence of the intergenerational mobility literature for the UK. There are no statistically significant findings on causality in intergenerational worklessness, driven by either measurement issues or a lack of causality.

Suggested Citation

  • Lindsey Macmillan, 2010. "The Intergenerational Transmission of Worklessness in the UK," The Centre for Market and Public Organisation 10/231, The Centre for Market and Public Organisation, University of Bristol, UK.
    • Handle: RePEc:bri:cmpowp:10/231
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    File URL: http://www.bristol.ac.uk/cmpo/publications/papers/2010/wp231.pdf
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    Citations

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    Cited by:

    1. Steffen Müller & Regina T. Riphahn & Caroline Schwientek, 2017. "Paternal unemployment during childhood: causal effects on youth worklessness and educational attainment," Oxford Economic Papers, Oxford University Press, vol. 69(1), pages 213-238.
    2. Mäder Miriam & Riphahn Regina T. & Schwientek Caroline & Müller Steffen, 2015. "Intergenerational Transmission of Unemployment – Evidence for German Sons," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 355-375, August.
    3. Velilla, Jorge, 2020. "Intergenerational correlation of self-employment in European countries," MPRA Paper 104184, University Library of Munich, Germany.
    4. Silvia Avram & Olga Canto, 2016. "Labour outcomes and family background: Evidence from the EU during the recession," Working Papers 414, ECINEQ, Society for the Study of Economic Inequality.
    5. Wouter Zwysen, 2015. "The effects of father’s worklessness on young adults in the UK," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-15, December.
    6. Gabriella Berloffa & Eleonora Matteazzi & Paola Villa, 2016. "Family background and youth labour market outcomes across Europe," Working Papers 393, ECINEQ, Society for the Study of Economic Inequality.
    7. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2020. "Short- vs Long-Term Intergenerational Correlations of Employment and Self-Employment in Europe," IZA Discussion Papers 12933, Institute of Labor Economics (IZA).
    8. Zwysen, Wouter, 2013. "Where you go depends on where you come from: the influence of father’s employment status on young adult’s labour market experiences," ISER Working Paper Series 2013-24, Institute for Social and Economic Research.

    More about this item

    Keywords

    Intergenerational mobility; unemployment;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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