Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207202 
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7811
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We study the consequences of mothers’ and fathers’ job loss for parents, families, and children. Rich Swedish register data allow us to identify plant closures and account for non-random selection of workers to closing plants by using propensity score matching and controlling for pre-displacement outcomes. Our overall conclusion is positive: childhood health, educational and early adult outcomes are not adversely affected by parental job loss. Parents and families are however negatively affected in terms of parental health, labor market outcomes and separations. Limited effects on family disposable income suggest that generous unemployment insurance and a dual-earner norm shield families from financial distress, which together with universal health care and free education is likely to be protective for children.
Subjects: 
parental unemployment
workplace closure
family environment
child health
human capital formation
JEL: 
I12
J10
Document Type: 
Working Paper
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