Job Losses and Child Outcomes

Bratberg, Espen; Nilsen, Øivind Anti; Vaage, Kjell

doi:10.2139/ssrn.1000145

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Job Losses and Child Outcomes

IZA Discussion Paper No. 2895

25 Pages Posted: 19 Jul 2007

See all articles by Espen Bratberg

Espen Bratberg

University of Bergen - Department of Economics

Øivind Anti Nilsen

Norwegian School of Economics (NHH) - Department of Economics; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Kjell Vaage

University of Bergen - Department of Economics

Date Written: June 2007

Abstract

Based on matched employer-employee data from Norway, we analyze the effects of worker displacement in 1986-1987 on their children's earnings in 1999-2001. Using displacement of fathers to indicate an exogenous earnings shock we seek to identify whether family resources have a direct effect on children's economic outcome. As in previous Scandinavian studies, we find the intergenerational earnings mobility to be fairly high compared to the U.S. and the U.K. Displacement appears to have a negative effect on earnings and employment of those affected, while we find no significant effects on offspring.

Keywords: displacement, intergenerational earnings correlations

JEL Classification: J62, C23

Suggested Citation: Suggested Citation

Bratberg, Espen and Nilsen, Oivind Anti and Vaage, Kjell, Job Losses and Child Outcomes (June 2007). IZA Discussion Paper No. 2895, Available at SSRN: https://ssrn.com/abstract=1000145 or http://dx.doi.org/10.2139/ssrn.1000145