Negative effects of job loss on adults such as considerable fall in income or even followed by divorce have long been examined. These effects may spread to their children via parental stress and discouragement or via income loss. This paper concentrates on maternal involuntary job loss and its potential effect on children’s non-cognitive skills. Job loss is identified as end of employment first and foremost due to plant closure, yet I also consider dismissals/layoffs by employer. Using a rich and representative data set, namely the German Socio-Economic Panel Study (SOEP), I estimate potential effects for pre-school children aged five/six and for adolescents aged seventeen. By propensity score matching I first account for a mother’s decision to work and in a second step I analyse involuntary/exogenous job loss of mothers and its influence on socio-emotional behaviour or internal locus of control. Children whose mothers experience an involuntary job loss are more likely to have behavioural problems and are less likely to believe in self-determination.
Presented by:
Frauke Peter (DIW - Berlin)
Date & time:
October 12, 2011 12:00 pm - October 12, 2011 1:00 pm
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