When it Hurts the Most: Timing of Parental Job Loss and a Child's Education

Bingley, Paul; Cappellari, Lorenzo; Ovidi, Marco

doi:10.2139/ssrn.4538031

SSRN Journal

2023

DOI: 10.2139/ssrn.4538031

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When it Hurts the Most: Timing of Parental Job Loss and a Child's Education

Paul Bingley

Lorenzo Cappellari

Marco Ovidi

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2024

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Cited by 1 publication

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How Early Career Choices Adjust to Economic Crises

Grenet,

Grönqvist,

Hertegård

et al. 2024

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We study how students adjust their early career choices in response to economic crises, and how this behavioral response affects their long-run labor market outcomes. We specifically examine the context of the severe recession that struck Sweden in the early 1990s, which disproportionally affected the manufacturing and construction sectors. We find that students who experienced paternal job loss in these heavily affected sectors were more likely to choose high school programs linked to sectors less impacted by the recession. These individuals achieved better labor market outcomes in adulthood, including higher employment rates and career earnings. Our findings are consistent with informational frictions being a key obstacle to structural change, and we identify career choice as an important mechanism through which recessions reshape labor markets in the very long run.

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How Early Career Choices Adjust to Economic Crises

Grenet,

Grönqvist,

Hertegård

et al. 2024

View full text Add to dashboard Cite

show abstract

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When it Hurts the Most: Timing of Parental Job Loss and a Child's Education

Cited by 1 publication

References 55 publications

How Early Career Choices Adjust to Economic Crises

How Early Career Choices Adjust to Economic Crises

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