Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314522 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17625
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Dual labor markets are characterized by a group of workers with permanent jobs and a stable income source and another group with short-term contracts who suffer from income uncertainty and employment volatility. These differences in job security translate into several spheres of these workers' lives, with potential implications for families' well-being. This paper analyzes the causal effect of parental job security on children's health. To address endogeneity, we exploit a reform that incentivized secure labor contracts for young (under 30) and female workers in Spain by reducing payroll taxes paid by employers. Using data from several waves of the Spanish National Health Survey and combining Instrumental Variables and Differences-in-Differences methods, we find that having a secure labor contract increases the probability that children are in good or very good health by 20%. We also document some mechanisms, such as reductions in children's accidents, increases in the frequency of physical activity, and a more protein-intense diet.
Subjects: 
job security
children's health
JEL: 
I14
I12
J41
Document Type: 
Working Paper

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