Skip to content

Research Paper SSRN Research Paper Series

The long-term labor market effects of parental unemployment


Publication date

Nov 2018


I investigate the long-run impact of parental job loss around important decision milestones on children's long-run labor market outcome. Using the early tracking of children in the Austrian school system at age 10 to define such a milestone, I compare labor market outcomes until the age of 37 of children whose parents had an unemployment spell shortly before and after the track choice. Early parental unemployment lowers the child's probability of holding a university degree and this difference cannot be explained by different access to family resources. I show that early parental unemployment has a long lasting impact on children's unemployment days and income for those at the upper part of the distribution. A substantial share of these long-term losses can be explained by sub-optimal parental investment decisions at age 10.


Education, Child Development, Labour Market, Households, Unemployment, Income Dynamics, and Life Course Analysis


Related publications

  1. Prognosis for GM closing based on my parent’s unemployment

    Bernhard Schmidpeter


Research home

Research home


Latest findings, new research

Publications search

Search all research by subject and author


Researchers discuss their findings and what they mean for society


Background and context, methods and data, aims and outputs


Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report


Key research themes and areas of interest