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Extracting the causal component from the intergenerational correlation in unemployment

Link to article:

[PDF]

Authors:

Ekhaugen, Tyra

Year:

2005

Reference:

Memorandum
Number in series: 21

Summary

This paper examines the intergenerational correlation in unemployment in Norway and, by use of the sibling-difference method, separates that correlation into its causal and non-causal parts. Detailed register data covering the entire Norwegian population provide the long panel of data this method requires, and allow experimentation with different definitions of parental unemployment. Confirming existing evidence, I find a substantial intergenerational correlation in unemployment. Approximately half of this is due to observed family heterogeneity. The estimated causal effect is nonsignificantly negative for all measures of parental unemployment.

JEL:

J62; J64.

Keywords:

Intergenerational mobility; unemployment; sibling estimators.

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 1151 - Mobilizing labour force participation

Contact:

t.m.ekhaugen@frisch.uio.no

Financing:

Norges forskningsråd