Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2019:3: Parental job loss and child human capital in the short and long run

Eva Mörk (), Anna Sjögren () and Helena Svaleryd ()
Additional contact information
Eva Mörk: Uppsala University, Postal: Uppsala University
Anna Sjögren: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden
Helena Svaleryd: Uppsala University, Postal: Uppsala University

Abstract: We study the effects of parental job loss on children’s health, educational achievement and labor market success as young adults. Past evidence shows mixed results which could be due to small sample sizes and that workers who suffer job loss are a selected group. Using Swedish register data, including more than 140,000 children whose parents were displaced due to workplace closures, and conditioning on a wide set of pretreatment outcomes of both parents and children, we find no effects of parental job loss on childhood health, school performance or outcomes as young adults although parents are negatively affected.

Keywords: Parental unemployment; workplace closure; child health; human capital formation

JEL-codes: I12; J11

58 pages, February 18, 2019

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