Parental Proximity and Earnings after Job Displacements

94 Pages Posted: 22 Oct 2019

See all articles by Patrick Coate

Patrick Coate

National Council on Compensation Insurance

Pawel Michal Krolikowski

Federal Reserve Banks - Federal Reserve Bank of Cleveland

Michael A. Zabek

Board of Governors of the Federal Reserve System

Date Written: July 23, 2019

Abstract

The earnings of young adults who live in the same neighborhoods as their parents completely recover after a job displacement, unlike the earnings of young adults who live farther away, which permanently decline. Nearby workers appear to benefit from help with childcare since grandmothers are less likely to be employed after their child's job displacement and since the earnings benefits are concentrated among young adults who have children. The result also suggests that parental employment networks improve earnings. Differences in job search durations, transfers of housing services, and geographic mobility, however, are too small to explain the result.

Keywords: Adult children, Childcare, Family ties, Job loss, Parents, Transfers

JEL Classification: J61, J64, R23

Suggested Citation

Coate, Patrick and Krolikowski, Pawel Michal and Zabek, Michael Alexander, Parental Proximity and Earnings after Job Displacements (July 23, 2019). FEDS Working Paper No. 2019-062, Available at SSRN: https://ssrn.com/abstract=3473046 or http://dx.doi.org/10.17016/FEDS.2019.062

Patrick Coate (Contact Author)

National Council on Compensation Insurance ( email )

5 Marine View Plaza, 4th Floor
Hoboken, NJ 07030-5722
United States

Pawel Michal Krolikowski

Federal Reserve Banks - Federal Reserve Bank of Cleveland ( email )

East 6th & Superior
Cleveland, OH 44101-1387
United States

Michael Alexander Zabek

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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