Parental Job Loss and Children's Careers

43 Pages Posted: 4 Dec 2019

See all articles by Krista Riukula

Krista Riukula

ETLA, Research Institute of the Finnish Economy

Kristiina Huttunen

Aalto University - Department of Economics

Abstract

We study the effect of parental job loss on children's outcomes using administrative data from Finland. We focus on two channels through which parental job loss can affect children's careers: 1) by affecting the child's field of study choices and 2) by weakening social ties to the labor market. We find evidence supporting both mechanisms: a father's job loss decreases the likelihood of the child choosing the father's field of study or finding employment in the father's plant. Children of displaced fathers have lower earnings; however, we find no effects on the outcomes measured before the study choices are made.

Keywords: job loss, childhood income, study field, social ties, education, earnings

JEL Classification: I24, J24, J63

Suggested Citation

Riukula, Krista and Huttunen, Kristiina, Parental Job Loss and Children's Careers. IZA Discussion Paper No. 12788, Available at SSRN: https://ssrn.com/abstract=3495765

Krista Riukula

ETLA, Research Institute of the Finnish Economy

Lonnrotink. 4 B
FIN-00120 Helsinki, 00120
United States

Kristiina Huttunen (Contact Author)

Aalto University - Department of Economics ( email )

PO Box 1210
FI-00101 Helsinki
Finland

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
7
Abstract Views
106
PlumX Metrics