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Unexpected Victims: How Parents' Unemployment Affects Their Children's Life SatisfactionJohn P. Haisken-DeNewUniversity of Melbourne, Melbourne Institute (MIAESR); Ruhr Universität Bochum - Faculty of Economics; McMaster University, Faculty of Social Sciences, Department of Economics Michael KindRuhr Graduate School in Economics February 2012 Melbourne Institute Working Paper No. 2/12 Abstract: The effects of unemployment on the subjective wellbeing (SWB) of the unemployed on the unemployed are well documented. Using data from the German SOEP for 17-25 year olds living with their parents, this paper examines the additional indirect effects of parents’ unemployment on their children’s subjective wellbeing in an attempt to capture the full impact of unemployment. The reason for entry (exogenous versus endogenous) into unemployment plays a major role. Fathers who enter unemployment exogenously affect their son’s SWB negatively, as do mothers who enter into unemployment endogenously. Parental unemployment has no impact on daughters’ SWB.
Number of Pages in PDF File: 23 Keywords: Life satisfaction, unemployment, intergenerational transmission JEL Classification: Z1, J64, J65, J13 working papers seriesDate posted: February 18, 2012Suggested CitationContact Information
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