Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Bergen, Department of Economics

No 07/07: Job losses and child outcomes

Espen Bratberg (), Øivind Anti Nilsen () and Kjell Vaage ()
Additional contact information
Espen Bratberg: University of Bergen, Department of Economics, Postal: Hermann Fossgt. 6, N-5007 Bergen, Norway
Øivind Anti Nilsen: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, Postal: Helleveien 30, N-5045 Bergen, Norway
Kjell Vaage: University of Bergen, Department of Economics, Postal: Hermann Fossgt. 6, N-5007 Bergen, Norway

Abstract: Based on matched employer-employee data from Norway, we analyze the effects of worker displacement in 1986-1987 on their children’s earnings in 1999-2001. Using displacement of fathers to indicate an exogenous earnings shock we seek to identify whether family resources have a direct effect on children’s economic outcome. As in previous Scandinavian studies, we find the intergenerational earnings mobility to be fairly high compared to the U.S. and the U.K. Job losses appear to have a negative effect on earnings and employment of those affected, while we find no significant effects on offspring.

Keywords: Displacement; intergenerational earnings correlations.

JEL-codes: C23; J62

22 pages, June 1, 2007

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