Intergenerational effects of employment protection reforms

Abstract

Job insecurity has worsened in most OECD countries in the aftermath of the Great Recession. Using Labour Force Survey data, I estimate the link between parental job insecurity (as measured by the contract type held by parents) and children's school related outcomes. Endogeneity issues affecting the type of contract held by parents are dealt with by constructing an instrument based on regional, time and demographic variation in the amount of wage subsidies available to firms to convert fixed-term contracts into permanent ones in Spain. The findings suggest that children whose fathers are less job insecure are considerably more likely to graduate from compulsory education on time. They are also less likely to drop out of the education system and be classified as Not in Education, Employment or Training at age sixteen. Employment protection reforms that liberalise the use of fixed-term contracts and do not take into account these negative externalities on other members of the household are therefore understating their overall cost.

The Use of Digital Educational Resources in Times of COVID-19

“…The economic and employment situation of families is another potential source of unequal opportunities. A student’s likelihood of graduating from school is significantly lower when parents or guardians have temporary employment contracts (Ruiz-Valenzuela, 2020). Similarly, when unemployment rates increase, students’ performance in mathematics may decrease by almost 8% (Ananat et al, 2011).…”

Desigualdades Educativas Derivadas del Covid-19 desde una Perspectiva Feminista. Análisis de los Discursos de Profesionales de la Educación Madrileña

“…El estudiantado con escasos recursos de zonas urbanas presenta graves dificultades para mantener las clases a distancia, sin las herramientas necesarias y teniendo un mayor riesgo de contagio (Rodríguez Morales, 2020). La inseguridad laboral de las familias se ha agudizado durante esta pandemia y se prevé que aumentará, afectando al alumnado en su rendimiento (Ruiz-Valenzuela, 2020), aunque en este punto se requiere un análisis interseccional y pormenorizado de las diferentes situaciones (De Sousa Santos, 2020).…”

Labour Market Shocks and Parental Investments during the Covid-19 Pandemic

“…When parents lose their jobs or suffer earnings losses, this can negatively impact their offspring’s well-being ( Nikolova, Nikolaev, 2018 , Powdthavee, Vernoit, 2013 ), health ( Lindo, 2011 ), educational success ( Rege, Telle, Votruba, 2011 , Ruiz-Valenzuela, 2020a , Stevens, Schaller, 2011 ) and even long-term career outcomes ( Fradkin, Panier, Tojerow, 2019 , Hilger, 2016 ). There are also damaging effects of father’s job insecurity on children’s educational outcomes ( Ruiz-Valenzuela, 2020b ). 1 Affected children might be scarred far beyond the contemporary labour market shock.…”