Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/216380
Authors: 
Grübl, Dominik
Lackner, Mario
Winter-Ebmer, Rudolf
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers 13068
Abstract: 
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) identification 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.
Subjects: 
intergenerational transmission
mass layoff
unemployment duration
instrumental variable
JEL: 
J62
J64
Document Type: 
Working Paper

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