Intergenerational Transmission of Unemployment - Causal Evidence from Austria

Grübl, Dominik; Lackner, Mario and Winter-Ebmer, RudolfORCID: (April 2020) Intergenerational Transmission of Unemployment - Causal Evidence from Austria. IHS Working Paper Series 14, 26 p.

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We estimate the causal effect of parents' unemployment on unemployment among their children in their own adulthood. We use administrative data for Austrian children born between 1974 and 1984 and apply an instrumental variables (IV) identifcation strategy using parents' job loss during a mass layoff as the instrument. We find evidence of unemployment inheritance in the next generation. An additional day of unemployment during childhood causally raises the average unemployment days of the adult child by 1 to 2%. The greatest effects are observed for unmarried parents, young children, children of low-education parents, and in families living in capital cities. We also explore various channels of intergenerational unemployment, such as education, income, and job matching by parents.

Item Type: IHS Series
Additional Information (public): Financial support by the LIT and the Austrian FWF
Keywords: intergenerational transmission, mass layoff, unemployment duration, instrumental variable
Classification Codes (e.g. JEL): J62, J64
Research Units: Former Research Units (until 2020) > Labor Market and Social Policy
Date Deposited: 08 Apr 2020 07:18
Last Modified: 03 May 2024 11:00

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