IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp12788.html
   My bibliography  Save this paper

Parental Job Loss and Children's Careers

Author

Listed:
  • Huttunen, Kristiina

    (Aalto University)

  • Riukula, Krista

    (ETLA - The Research Institute of the Finnish Economy)

Abstract

We study the effect of parental job loss on children's outcomes using administrative data from Finland. We focus on two channels through which parental job loss can affect children's careers: 1) by affecting the child's field of study choices and 2) by weakening social ties to the labor market. We find evidence supporting both mechanisms: a father's job loss decreases the likelihood of the child choosing the father's field of study or finding employment in the father's plant. Children of displaced fathers have lower earnings; however, we find no effects on the outcomes measured before the study choices are made.

Suggested Citation

  • Huttunen, Kristiina & Riukula, Krista, 2019. "Parental Job Loss and Children's Careers," IZA Discussion Papers 12788, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12788
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp12788.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Emilia Del Bono & Andrea Weber & Rudolf Winter-Ebmer, 2012. "Clash Of Career And Family: Fertility Decisions After Job Displacement," Journal of the European Economic Association, European Economic Association, vol. 10(4), pages 659-683, August.
    2. Andrey Fradkin & Frédéric Panier & Ilan Tojerow, 2019. "Blame the Parents? How Parental Unemployment Affects Labor Supply and Job Quality for Young Adults," Journal of Labor Economics, University of Chicago Press, vol. 37(1), pages 35-100.
    3. Francis Kramarz & Oskar Nordström Skans, 2014. "When Strong Ties are Strong: Networks and Youth Labour Market Entry," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(3), pages 1164-1200.
    4. Katrine V. Løken & Magne Mogstad & Matthew Wiswall, 2012. "What Linear Estimators Miss: The Effects of Family Income on Child Outcomes," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 1-35, April.
    5. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, vol. 102(5), pages 1927-1956, August.
    6. Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2008. "Job losses and child outcomes," Labour Economics, Elsevier, vol. 15(4), pages 591-603, August.
    7. Jason Long & Joseph Ferrie, 2013. "Intergenerational Occupational Mobility in Great Britain and the United States since 1850: Reply," American Economic Review, American Economic Association, vol. 103(5), pages 2041-2049, August.
    8. Lindo, Jason M., 2011. "Parental job loss and infant health," Journal of Health Economics, Elsevier, vol. 30(5), pages 869-879.
    9. Nathaniel G. Hilger, 2016. "Parental Job Loss and Children's Long-Term Outcomes: Evidence from 7 Million Fathers' Layoffs," American Economic Journal: Applied Economics, American Economic Association, vol. 8(3), pages 247-283, July.
    10. Stevens, Ann Huff, 1997. "Persistent Effects of Job Displacement: The Importance of Multiple Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 165-188, January.
    11. Jason Long & Joseph Ferrie, 2013. "Intergenerational Occupational Mobility in Great Britain and the United States since 1850," American Economic Review, American Economic Association, vol. 103(4), pages 1109-1137, June.
    12. Henry S. Farber, 2010. "Job Loss and the Decline in Job Security in the United States," NBER Chapters, in: Labor in the New Economy, pages 223-262, National Bureau of Economic Research, Inc.
    13. Hilary Hoynes & Diane Whitmore Schanzenbach & Douglas Almond, 2016. "Long-Run Impacts of Childhood Access to the Safety Net," American Economic Review, American Economic Association, vol. 106(4), pages 903-934, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Britto, Diogo & Melo, Caíque & Sampaio, Breno, 2022. "The Kids Aren't Alright: Parental Job Loss and Children's Outcomes within and beyond Schools," IZA Discussion Papers 15591, Institute of Labor Economics (IZA).
    2. Sarah Cattan & Christine Farquharson & Sonya Krutikova & Andrew McKendrick & Almudena Sevilla, 2023. "Parental labour market instability and children's mental health during the pandemic," IFS Working Papers W23/21, Institute for Fiscal Studies.
    3. Martti Kaila & Emily Nix & Krista Riukula, 2021. "Disparate Impacts of Job Loss by Parental Income and Implications for Intergenerational Mobility," Opportunity and Inclusive Growth Institute Working Papers 53, Federal Reserve Bank of Minneapolis.
    4. 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).
    5. Andersen, Carsten & Houmark, Mikkel Aagaard & Nielsen, Helena Skyt & Svarer, Michael, 2022. "Children in the Aftermath of the Great Recession," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2022(1), pages 1-28.
    6. Willage, Barton & Willén, Alexander, 2022. "Postpartum Job Loss: Transitory Effect on Mothers, Long-run Damage to Children," European Economic Review, Elsevier, vol. 150(C).
    7. Fu, Wentao & Zhu, Feng & Cheng, Yao, 2023. "Gender differences in intergenerational effects of laid-off parents," Economic Systems, Elsevier, vol. 47(4).
    8. Martínez-Jiménez, Mario, 2023. "Parental nonemployment in childhood and children’s health later in life," Economics & Human Biology, Elsevier, vol. 49(C).
    9. Müller, Dagmar, 2021. "Lost Opportunities: Work during High School, Establishment Closures and the Impact on Career Prospects," Working Paper Series 1381, Research Institute of Industrial Economics.
    10. Riukula, Krista, 2024. "Childhood Shocks and Fertility: Evidence from Parental Job Loss," ETLA Working Papers 112, The Research Institute of the Finnish Economy.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Riukula, Krista, 2024. "Childhood Shocks and Fertility: Evidence from Parental Job Loss," ETLA Working Papers 112, The Research Institute of the Finnish Economy.
    2. 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).
    3. George Bulman & Robert Fairlie & Sarena Goodman & Adam Isen, 2021. "Parental Resources and College Attendance: Evidence from Lottery Wins," American Economic Review, American Economic Association, vol. 111(4), pages 1201-1240, April.
    4. Willage, Barton & Willén, Alexander, 2022. "Postpartum Job Loss: Transitory Effect on Mothers, Long-run Damage to Children," European Economic Review, Elsevier, vol. 150(C).
    5. Britto, Diogo & Melo, Caíque & Sampaio, Breno, 2022. "The Kids Aren't Alright: Parental Job Loss and Children's Outcomes within and beyond Schools," IZA Discussion Papers 15591, Institute of Labor Economics (IZA).
    6. Douglas Almond & Janet Currie & Valentina Duque, 2018. "Childhood Circumstances and Adult Outcomes: Act II," Journal of Economic Literature, American Economic Association, vol. 56(4), pages 1360-1446, December.
    7. Martha J Bailey & Hilary Hoynes & Maya Rossin-Slater & Reed Walker, 2024. "Is the Social Safety Net a Long-Term Investment? Large-Scale Evidence From the Food Stamps Program," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 91(3), pages 1291-1330.
    8. Duque, Valentina & Schmitz, Lauren L., 2020. "The Influence of Early-life Economic Shocks on Long-term Outcomes: Evidence from the U.S. Great Depression," Working Papers 2020-11, University of Sydney, School of Economics.
    9. Patralekha Ukil, 2019. "Parental Economic Shocks and Infant Health: The Effect of Import Competition in the U.S," Working papers 2019-18, University of Connecticut, Department of Economics.
    10. Krishna Regmi, 2019. "Examining The Externality Of Unemployment Insurance On Children'S Educational Achievement," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 172-187, January.
    11. Regmi, Krishna & Henderson, Daniel J., 2019. "Labor Demand Shocks at Birth and Cognitive Achievement during Childhood," IZA Discussion Papers 12521, Institute of Labor Economics (IZA).
    12. Neffke, Frank & Nedelkoska, Ljubica & Wiederhold, Simon, 2024. "Skill mismatch and the costs of job displacement," Research Policy, Elsevier, vol. 53(2).
    13. Tominey, Emma, 2013. "Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock," IZA Discussion Papers 7462, Institute of Labor Economics (IZA).
    14. Di Maio, Michele & Nisticò, Roberto, 2019. "The effect of parental job loss on child school dropout: Evidence from the Occupied Palestinian Territories," Journal of Development Economics, Elsevier, vol. 141(C).
    15. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    16. Jason M. Lindo & Krishna Regmi & Isaac Swensen, 2020. "Stable Income, Stable Family," NBER Working Papers 27753, National Bureau of Economic Research, Inc.
    17. Gathmann, Christina & Huttunen, Kristiina & Jernström, Laura & Sääksvuori, Lauri & Stitzing, Robin, 2020. "In Sickness and in Health: Job Displacement and Health Spillovers in Couples," IZA Discussion Papers 13329, Institute of Labor Economics (IZA).
    18. Fu, Wentao & Zhu, Feng & Cheng, Yao, 2023. "Gender differences in intergenerational effects of laid-off parents," Economic Systems, Elsevier, vol. 47(4).
    19. Bryan A. Stuart, 2022. "The Long-Run Effects of Recessions on Education and Income," American Economic Journal: Applied Economics, American Economic Association, vol. 14(1), pages 42-74, January.
    20. 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).

    More about this item

    Keywords

    education; social ties; study field; childhood income; job loss; earnings;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp12788. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.