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When It Hurts the Most: Timing of Parental Job Loss and a Child's Education

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  • Bingley, Paul

    (VIVE - The Danish Centre for Applied Social Science)

  • Cappellari, Lorenzo

    (Università Cattolica del Sacro Cuore)

  • Ovidi, Marco

    (Catholic University Milan)

Abstract

We investigate the stages of childhood at which parental job loss is most consequential for their child's education. Using Danish administrative data linking parents experiencing plant closures to their children, we compare end-of-school outcomes to matched peers and to closures hitting after school completion age. Parental job loss disproportionally reduces test taking, scores, and high school enrolment among children exposed during infancy (age 0-1). Effects are largest for low-income families and low-achieving children. The causal chain from job loss to education likely works through reduced family income. Maternal time investment partially offsets the effect of reduced income.

Suggested Citation

  • 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).
    • Handle: RePEc:iza:izadps:dp16367
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    Keywords

    parental labor market shocks; intergenerational mobility; child development;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D10 - Microeconomics - - Household Behavior - - - General
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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