Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215184 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12788
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
education
social ties
study field
childhood income
job loss
earnings
JEL: 
I24
J24
J63
Document Type: 
Working Paper

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