() and Alexander Willén
Barton Willage: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Alexander Willén: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Abstract: The first year after childbirth involves dramatic changes to parents’ lives and is crucial for children’s development. Using plausibly exogenous job loss from mass layoffs, we study the effect of labor shocks on mothers and children. Mothers displaced in the postpartum year experience significantly larger effects than mothers displaced in non-birth years. No such effects are present among fathers. Additionally, we find long-lasting harm to children’s educational outcomes. These effects do not extend to children who experience maternal job loss later in life nor to children who experience paternal job loss. Examining potential mechanisms suggest effects are driven by maternal stress.
29 pages, November 19, 2020
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