The causal effect of family difficulties during childhood on adult labour market outcomes

Millemaci, Emanuele and Sciulli, Dario (2011): The causal effect of family difficulties during childhood on adult labour market outcomes.

Abstract

Applying a propensity score matching approach to UK National Child Development Study, we find that experiencing family difficulties during childhood determines a negative and long-lasting impact on adult employment probabilities and wage. Standard econometric techniques and simulation based sensitivity analysis support our findings. The intensity of the disadvantage appears to increase with the number of recorded family difficulties. Moreover, we find that housing and economic problems are responsible for the more serious disadvantage, while disability of family members and disharmony act statistically significantly only if associated with other problems. Finally, the effect appears not to decline over the cohort working life.

• Item Type: MPRA Paper
• Language: English
• Keywords: family difficulties, propensity score matching, labour market outcomes, simulation-based sensitivity analysis, long term causal effects
• Subjects: J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth; J - Labor and Demographic Economics > J1 - Demographic Economics > J12 - Marriage ; Marital Dissolution ; Family Structure ; Domestic Abuse; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C21 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions; J - Labor and Demographic Economics > J0 - General

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