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Job loss at home: children’s school performance during the Great Recession

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  • Ruiz-Valenzuela, Jenifer

Abstract

This paper studies the intergenerational impact of parental job loss on school performance during the Great Recession in Spain. Collecting data through parental surveys in a school in the province of Barcelona, I obtain information about the parental labour market status before and after the Great Recession. I can then link this information to repeated information on their children’s school performance, for a sample of over 300 students. Using individual fixed effects, the estimates show a negative and significant decrease on average grades of around 15% of a standard deviation after father’s job loss. These results are mainly driven by those students whose fathers suffer long unemployment spells. In contrast, the average impact of mother’s job loss on school performance is close to zero and non-significant. The decline in school performance during the Great Recession after father’s job loss, particularly among disadvantaged students, could result in detrimental long-term effects that might contribute to increased inequality. This could be an important and underemphasised cost of recessions.

Suggested Citation

  • Ruiz-Valenzuela, Jenifer, 2020. "Job loss at home: children’s school performance during the Great Recession," LSE Research Online Documents on Economics 105099, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:105099
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    File URL: http://eprints.lse.ac.uk/105099/
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    Citations

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    Cited by:

    1. Bingley, Paul & Cappellari, Lorenzo & Ovidi, Marco, 2023. "When It Hurts the Most: Timing of Parental Job Loss and a Child's Education," IZA Discussion Papers 16367, Institute of Labor Economics (IZA).
    2. Hupkau, Claudia & Ruiz-Valenzuela, Jenifer & Isphording, Ingo E. & Machin, Stephen, 2023. "Labour Market Shocks and Parental Investments during the Covid-19 Pandemic," Labour Economics, Elsevier, vol. 82(C).
    3. Drydakis, Nick, 2023. "Parental unemployment and adolescents' academic performance," GLO Discussion Paper Series 1238, Global Labor Organization (GLO).
    4. Nick Drydakis, 2023. "Parental unemployment and adolescents' academic performance," International Journal of Manpower, Emerald Group Publishing Limited, vol. 44(7), pages 1362-1381, February.
    5. Jake Anders & Lindsey Macmillan, 2020. "The unequal scarring effects of a recession on young people's life chances," CEPEO Briefing Note Series 6, UCL Centre for Education Policy and Equalising Opportunities, revised Jun 2020.

    More about this item

    Keywords

    Great Recession; parental job loss; school performance;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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