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Paternal Unemployment During Childhood: Causal Effects on Youth Worklessness and Educational Attainment

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  • Müller, Steffen
  • Riphahn, Regina T.
  • Schwientek, Caroline

Abstract

Using long-running data from the German Socio-Economic Panel (1984-2012), we investigate the impact of paternal unemployment on child labor market and education outcomes. We first describe correlation patterns and then use sibling fixed effects and the Gottschalk (1996) method to identify the causal effects of paternal unemployment. We find different patterns for sons and daughters. Paternal unemployment does not seem to causally affect the outcomes of sons. In contrast, it increases both daughters' worklessness and educational attainment. We test the robustness of the results and explore potential explanations.

Suggested Citation

  • Müller, Steffen & Riphahn, Regina T. & Schwientek, Caroline, 2016. "Paternal Unemployment During Childhood: Causal Effects on Youth Worklessness and Educational Attainment," IWH Discussion Papers 8/2016, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:iwh-8-16
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    Cited by:

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    2. Hansen, Kerstin F. & Stutzer, Alois, 2022. "Parental unemployment, social insurance and child well-being across countries," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 600-617.
    3. Ubaldi, Michele & Picchio, Matteo, 2023. "Intergenerational Scars: The Impact of Parental Unemployment on Individual Health Later in Life," IZA Discussion Papers 16103, Institute of Labor Economics (IZA).
    4. Jennifer Feichtmayer & Regina T. Riphahn, 2023. "Intergenerational Transmission of Welfare Benefit Receipt: Evidence from Germany," SOEPpapers on Multidisciplinary Panel Data Research 1201, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Grübl, Dominik & Lackner, Mario & Winter-Ebmer, Rudolf, 2020. "Intergenerational Transmission of Unemployment - Causal Evidence from Austria," IHS Working Paper Series 14, Institute for Advanced Studies.
    6. Daniel Gladwell & Gurleen Popli & Aki Tsuchiya, 2022. "Predictors of becoming not in education, employment or training: A dynamic comparison of the direct and indirect determinants," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(S2), pages 485-514, December.
    7. Diana Alessandrini & Bharat Diwakar, 2023. "The Intergenerational Effects of Recessions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(4), pages 1060-1087, December.
    8. Kristina Lindemann & Markus Gangl, 2018. "Parental Unemployment and the Transition into Tertiary Education: Can Institutions Moderate the Adverse Effects?," SOEPpapers on Multidisciplinary Panel Data Research 972, DIW Berlin, The German Socio-Economic Panel (SOEP).

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    More about this item

    Keywords

    youth unemployment; educational attainment; intergenerational mobility; causal effect; Gottschalk method; sibling fixed effects;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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