Unexpected Victims: How Parents' Unemployment Affects Their Children's Life Satisfaction

23 Pages Posted: 18 Feb 2012

See all articles by John P. Haisken-DeNew

John P. Haisken-DeNew

University of Melbourne - Melbourne Institute of Applied Economic and Social Research; McMaster University, Faculty of Social Sciences, Department of Economics

Michael Kind

Ruhr Graduate School in Economics

Date Written: February 2012

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.

Keywords: Life satisfaction, unemployment, intergenerational transmission

JEL Classification: Z1, J64, J65, J13

Suggested Citation

Haisken-DeNew, John P. and Kind, Michael, Unexpected Victims: How Parents' Unemployment Affects Their Children's Life Satisfaction (February 2012). Melbourne Institute Working Paper No. 2/12. Available at SSRN: https://ssrn.com/abstract=2006040 or http://dx.doi.org/10.2139/ssrn.2006040

John P. Haisken-DeNew (Contact Author)

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

McMaster University, Faculty of Social Sciences, Department of Economics ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

Michael Kind

Ruhr Graduate School in Economics ( email )

Hohenzollernstr. 1-3
Essen, NRW 45128
Germany

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