Short-run effects of parental job loss on children's academic achievement

Stevens, Ann Huff; Schaller, Jessamyn

doi:10.1016/j.econedurev.2010.10.002

“…4 2 For example, Clark et al (2008) show that unemployment has the strongest effect on life satisfaction compared to other negative life events. Job loss is also shown to trigger pecuniary and non-pecuniary consequences that may even spill over to their partners and children (see, for example, studies by Charles and Stephens, 2004;Huff-Stevens and Schaller, 2011;Lindo, 2011;Marcus, 2013Marcus, , 2014Oreopoulos et al, 2008;Peter, 2016;Rege et al, 2011Rege et al, , 2009Schaller and Zerpa, 2015). In this strand of literature, job loss due to plant closure is classified as an exogenous shock, which allows us to rule out endogenous selection and omitted variable bias.…”

Section: Introductionmentioning

confidence: 99%

Involuntary job loss and changes in personality traits

Anger

¹

,

Camehl

²

,

Peter

³

2017

Journal of Economic Psychology

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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 Involuntary Job Loss and Changes in Personality Traits februAry 2017Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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“…Ananat et al (2008), Rege et al (2011), andGregg et al (2012) find a detrimental effect of parental unemployment on offspring's school grades for the U.S., Norway, and the U.K., respectively. Stevens and Schaller (2011) report an increased propensity to repeat grades for U.S. pupils and Andersen (2013) shows that U.K. children lower their schooling ambitions during parental unemployment. Finally, Pinger (2012) finds that paternal unemployment when the child is 16 years old reduces the probability of upper secondary school choice in Germany.…”

mentioning

confidence: 99%

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

Müller

¹

,

Riphahn

²

,

Schwientek

³

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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“…Dew and colleagues (1991) argued, based on a review of the previous 20 years of research on the mental health effects of involuntary job loss on US women workers, their spouses and children, that knowledge of family effects is critical to developing effective responses. Stevens and Schaller (2009) also concluded from their US research that understanding the negative impacts on the broader family is crucial if policymakers are to direct appropriate supports to families and areas experiencing mass job loss.…”

Section: Family Impacts Of Job Lossmentioning

confidence: 99%

Positive and negative impacts of job loss on family life: the perceptions of Australian car workers

Jolley¹,

Newman²,

Ziersch³

et al. 2011

Aust J Social Issues

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This article contributes to research on the impact of job loss on families. It is based on survey responses from 371 workers and in-depth interviews with 39 of them about the family impacts of their job loss from the Mitsubishi car factory in Adelaide in [2004][2005]. A majority of workers said family life had been affected by their job loss. Quantitative analysis identified four variables significantly associated with family impacts: marital status, children living at home, employment status and financial management. Qualitative responses showed the predominantly negative impacts were financial strain, loss of relationship stability, and general stress and worry, although few faced catastrophic impacts from their job loss. However, in contrast to most previous research, the in-depth interviews also revealed positive impacts from job loss, such as having more time at home and to spend with their family. We conclude that the existence of ongoing income support and public health insurance in Australia were important in avoiding catastrophic financial impacts on these workers and their families.

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Short-run effects of parental job loss on children's academic achievement

Cited by 215 publications

References 25 publications

Involuntary job loss and changes in personality traits

Involuntary job loss and changes in personality traits

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

Positive and negative impacts of job loss on family life: the perceptions of Australian car workers

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