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The causal effect of family difficulties during childhood on adult labour market outcomes

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  • Millemaci, Emanuele
  • Sciulli, Dario

Abstract

Applying a propensity score matching approach to UK National Child Development Study, we find that experiencing family difficulties during childhood determines a negative and long-lasting impact on adult employment probabilities and wage. Standard econometric techniques and simulation based sensitivity analysis support our findings. The intensity of the disadvantage appears to increase with the number of recorded family difficulties. Moreover, we find that housing and economic problems are responsible for the more serious disadvantage, while disability of family members and disharmony act statistically significantly only if associated with other problems. Finally, the effect appears not to decline over the cohort working life.

Suggested Citation

  • Millemaci, Emanuele & Sciulli, Dario, 2011. "The causal effect of family difficulties during childhood on adult labour market outcomes," MPRA Paper 29026, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:29026
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    References listed on IDEAS

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    More about this item

    Keywords

    family difficulties; propensity score matching; labour market outcomes; simulation-based sensitivity analysis; long term causal effects;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J0 - Labor and Demographic Economics - - General

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