Consequences of Parental Job Loss on the Family Environment and on Human Capital Formation - Evidence from Plant Closures

48 Pages Posted: 14 Oct 2019

See all articles by Eva Mörk

Eva Mörk

Uppsala University

Anna Sjögren

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg

Helena Svaleryd

Uppsala University

Multiple version iconThere are 2 versions of this paper

Date Written: 2019

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.

Keywords: parental unemployment, workplace closure, family environment, child health, human capital formation

Suggested Citation

Mörk, Eva and Sjögren, Anna and Svaleryd, Helena, Consequences of Parental Job Loss on the Family Environment and on Human Capital Formation - Evidence from Plant Closures (2019). CESifo Working Paper No. 7811, Available at SSRN: https://ssrn.com/abstract=3467944 or http://dx.doi.org/10.2139/ssrn.3467944

Eva Mörk (Contact Author)

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

Anna Sjögren

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg ( email )

Fachbereich Rechtswissenschaft
Schillerstr. 1
Erlangen, DE 91054
Germany

Helena Svaleryd

Uppsala University ( email )

P.O. Box 513
Uppsala, 75120
Sweden

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