Parental job loss and the education enrollment of youth

Coelli, Michael

doi:10.1016/j.labeco.2010.04.015

Cited by 147 publications

(123 citation statements)

References 37 publications

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“…We assume that student consumption in period 1 is based on transfers from their parents determined by a combination of parental permanent income, P I, and current family income F I. This allows transitory income shocks to have an impact on education decisions as one might expect in the presence of credit constraints (Coelli, 2009). 10 Students optimally choose 'schooling effort' e, which has a direct impact on their future earnings.…”

Section: Utilitymentioning

confidence: 99%

Ability, Parental Valuation of Education, and the High School Dropout Decision

Foley¹,

Gallipoli²,

Green³

2014

J. Human Resources

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We use a large, rich Canadian micro-level dataset to examine the channels through which family socio-economic status and unobservable characteristics affect children's decisions to drop out of high school. First, we document the strength of observable socio-economic factors: our data suggest that teenage boys with two parents who are themselves high school dropouts have a 16% chance of dropping out, compared to a dropout rate of less than 1% for boys whose parents both have a university degree. We examine the channels through which this socio-economic gradient arises using an extended version of the factor model set out in Carneiro, Hansen, and Heckman (2003). Specifically, we consider the impact of cognitive and non-cognitive ability and the value that parents place on education. Our results support three main conclusions. First, cognitive ability at age 15 has a substantial impact on dropping out. Second, parental valuation of education has an impact of approximately the same size as cognitive ability effects for medium and low ability teenagers. A low ability teenager has a probability of dropping out of approximately .03 if his parents place a high value on education but .36 if their education valuation is low. Third, parental education has no direct effect on dropping out once we control for ability and parental valuation of education. Our results point to the importance of whatever determines ability at age 15 (including, potentially, early childhood interventions) and of parental valuation of education during the teenage years. We also make a small methodological contribution by extending the standard factor based estimator to allow a non-linear relationship between the factors and a covariate of interest. We show that allowing for non-linearities has a substantial impact on estimated effects.

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Section: Utilitymentioning

confidence: 99%

Ability, Parental Valuation of Education, and the High School Dropout Decision

Foley¹,

Gallipoli²,

Green³

2014

J. Human Resources

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“…In a study of Canadian youth, Coelli (2010) finds that parental job joss from mass layoffs and business failure that occurs when youths are in the process of completing high school, leads to drops in College enrollment by ten percent. The effect comes from main bread winner job loss -and not spousal job -loss suggesting that the main channel is the loss of income.…”

Section: Empirical Evidence -Child Outcomesmentioning

confidence: 99%

“…Evidence from the plant-closure literature also suggests intergenerational consequences of parental job-loss on long run outcomes such as earnings and employment for children from disadvantaged families (Page et al, 2007;Oreopoulos et al, 2008). There are a few studies which find immediate effects on children's educational outcomes of parental job-loss (Coelli, 2010;Stevens and Schaller, 2010;and Rege et al, 2009). We will return to those studies in the next section.…”

mentioning

confidence: 99%

Parental Unemployment and Child Health

Mörk¹,

Sjögren²,

Svaleryd³

2014

CESifo Economic Studies

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes.You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. licence. www.econstor.eu If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated Parental unemployment and child healthEva Mörk Anna Sjögren Helena Svaleryd WORKING PAPER 2014:8The Institute for Evaluation of Labour Market and Education Policy (IFAU) is a research institute under the Swedish Ministry of Employment, situated in Uppsala. IFAU's objective is to promote, support and carry out scientific evaluations. The assignment includes: the effects of labour market and educational policies, studies of the functioning of the labour market and the labour market effects of social insurance policies. IFAU shall also disseminate its results so that they become accessible to different interested parties in Sweden and abroad.IFAU also provides funding for research projects within its areas of interest. The deadline for applications is October 1 each year. Since the researchers at IFAU are mainly economists, researchers from other disciplines are encouraged to apply for funding.IFAU is run by a Director-General. The institute has a scientific council, consisting of a chairman, the Director-General and five other members. Among other things, the scientific council proposes a decision for the allocation of research grants. A reference group including representatives for employer organizations and trade unions, as well as the ministries and authorities concerned is also connected to the institute. Papers published in the Working Paper Series should, according to the IFAU policy, have been discussed at seminars held at IFAU and at least one other academic forum, and have been read by one external and one internal referee. They need not, however, have undergone the standard scrutiny for publication in a scientific journal. The purpose of the Working Paper Series is to provide a factual basis for public policy and the public policy discussion. AbstractWe analyze to what extent health outcomes of Swedish children are worse among children whose parents become unemployed. To this end we combine Swedish hospitalization data for 1992-2007 for ch...

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“…While the literature analyzing educational outcomes finds negative short-term effects of paternal unemployment (e.g., Rege et al 2011, Gregg et al 2012, Pinger 2012, evidence on longer-run effects exists only for Canada and the U.S. (Coelli 2011, Wightman 2012) and points at a negative causal effect. Given the very different education systems, in particular with respect to the funding of post-secondary education, it is unclear whether the effect on educational outcomes is also negative in Germany.…”

Section: Introductionmentioning

confidence: 99%

Paternal unemployment during childhood: causal effects on youth worklessness and educational attainment

2016

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Using long-running data from the German Socio-Economic Panel 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. We thank seminar participants at the BGPE Research Workshop in Augsburg, the University of Sydney, the University of Otago, the ESPE conference in Braga, the cesifo Area conference on the Economics of Education, the EEA conference in Toulouse, the EALE conference in Ljubljana, and our discussant Chris Karbownik for very helpful comments. We are the first to offer evidence for the German case on the long-run effect of paternal unemployment on offspring's educational attainment in general and for daughters specifically. Terms of use: Documents in EconStor mayGermany is particularly interesting as, on the one hand, the OECD advised to increase enrollment in tertiary education (OECD 2012) and, on the other hand, Germany faces low youth 1 The latter argument touches the debate about possible credit constraints on post-secondary education attendance (e.g., Cameron and Taber 2004). Such financial constraints might be more severe in countries with tuition fees, such as the U.S., than in Germany where tertiary education is generally free and costs mainly consist of foregone earnings. 3 unemployment. We take advantage of long running panel data from the German SocioEconomic Panel (SOEP) to investigate correlation and causation patterns. Fixed effects techniques and the Gottschalk (1996) method identify causal relationships.We contribute to the literature in a number of ways. First, this is the first study on the long-run effect of paternal unemployment on educational attainment for Europe. Second, we provide the first study on the intergenerational transmission of unemployment for daughters for Germany. Third, by looking at unemployment and education in one study, we provide a more complete picture on the effect of paternal unemployment. Fourth, given the (mostly data driven) variety in the definition of treatment age in previous studies, we provide systematic evid...

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Parental job loss and the education enrollment of youth

Cited by 147 publications

References 37 publications

Ability, Parental Valuation of Education, and the High School Dropout Decision

Ability, Parental Valuation of Education, and the High School Dropout Decision

Parental Unemployment and Child Health

Paternal unemployment during childhood: causal effects on youth worklessness and educational attainment

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