Parental proximity and earnings after job displacements

Krolikowski, Pawel; Zabek, Mike; Coate, Patrick

doi:10.1016/j.labeco.2020.101877

Cited by 16 publications

(12 citation statements)

References 78 publications

(65 reference statements)

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“…For the US, Compton and Pollak (2014) found that living close to their own mother, and in this case also to their mother-in-law, increases the probability of mothers of young children to work. Also for the US, Krolikowski et al (2020) showed that after losing a job, young people living in the same neighborhood as their parents benefit from stronger earnings recovery and that this is mainly driven by childcare. In addition to these mostly positive effects, there might also be downsides to relying on grandparents for childcare.…”

Section: Literature Reviewmentioning

confidence: 99%

“…For instance, as wage growth and human capital investments flatten out with age (Ben-Porath, 1967;Becker, 1981), having grandparents to provide childcare for them would incur lower family-wide opportunity costs than if the mothers themselves stopped working. It might thus be rational for grandparents to reduce working hours and give up labor earnings so that their daughter can invest in her lifetime earnings while she is still in the phase of steep wage growth (see Krolikowski et al, 2020). Hence, the availability of grandparents to supply childcare depends on their own employment and living situation (Hank & Buber, 2009;Bratti et al, 2018).…”

Section: Economic Activitymentioning

confidence: 99%

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How Young Mothers Rely on Kin Networks and Formal Childcare to Avoid Becoming NEET in the Netherlands

et al. 2022

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Motherhood is often cited as one of the main reasons for young women to become NEET (not in employment, education, or training). Given the potential long-term negative implications of NEET status, it is important to understand which types of resources can help young mothers to avoid becoming NEET around childbirth. In this paper we investigate how the chances of young mothers to become and stay NEET around the time of first birth are related to the availability and characteristics of members of their social support network, especially partners and grandparents, to assist in childcare. In addition, we consider the local availability of formal childcare. We use population-wide register data from the Netherlands and estimate discrete-time eventhistory models. Our results show that young mothers who are cohabitating or married are less likely to become NEETs than single mothers. We also show that economic activity and relative wage of both young mothers and their partners decreases the likelihood to become NEET and to exit NEET. With respect to the grandparents, we find that having more grandparents live in the immediate vicinity is associated with a lower likelihood to become NEET and a higher likelihood to exit NEET. Furthermore, we find that young mothers with economically inactive parents are more likely to become and less likely to exit NEET. Lastly, we find evidence for crowding-out of informal and formal childcare. Formal and informal childcare sources interact in such a way that the role of either becomes less important as more of the other is available.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Economic Activitymentioning

confidence: 99%

How Young Mothers Rely on Kin Networks and Formal Childcare to Avoid Becoming NEET in the Netherlands

et al. 2022

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“…As Rodrik (2007) emphasizes, many of these policies are targeted on firms and industries that would be in difficulties even in the absence of the program, so naïve ordinary least squares (OLS) estimates may miss any positive effects. 2 We tackle the identification problem by exploiting a policy experiment that induced exogenous changes in the eligibility criteria governing whether plants in economically disadvantaged areas could receive investment subsidies from a major subsidy program in the United Kingdom. This program was called Regional Selective Assistance (RSA), but similar support programs exist in other European Union (EU) countries.…”

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confidence: 99%

Some Causal Effects of an Industrial Policy

Criscuolo

Martin

Overman

et al. 2019

American Economic Review

312

152

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We exploit changes in the area-specific eligibility criteria for a program to support jobs through investment subsidies. European rules determine whether an area is eligible for subsidies, and we construct instrumental variables for area eligibility based on parameters of these rule changes. Areas eligible for higher subsidies significantly increased jobs and reduced unemployment. A 10-percentage point increase in the maximum investment subsidy stimulates a 10 percent increase in manufacturing employment. This effect exists solely for small firms: large companies accept subsidies without increasing activity. There are positive effects on investment and employment for incumbent firms but not Total Factor Productivity. (JEL E24, G31, H25, L25, L52, R23)

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“…Moreover, they also find that an increase in welfare benefits affects the provision of parental support in terms of transfers and coresidence (Rosenzweig and Wolpin, 1994). Krolikowski et al (2020) extend the idea of coresidence by studying the effect of living in the same neighborhood as parents on earnings. They find that young people who live close to their parents experience stronger earnings recoveries after a job displacement than those who live farther away.…”

Section: Introductionmentioning

confidence: 93%