Early Labor Market Prospects and Family Formation

Engdahl, MattiasUppsala universitet,Institutet för arbetsmarknadspolitisk utvärdering (IFAU) (author)

Using quasi-random variation in graduation years of Swedish vocational high-school females at the sudden onset of a deep national recession, we study how deteriorated early labor-market prospects affected economic and family outcomes during the following decades. Labor-market consequences were severe but not permanent. In contrast, family outcomes were permanently altered, in particular for low-GPA women. These women married and had children earlier, and they partnered with lower-performing spouses. Divorce and single-motherhood rates rose, and welfare-claims remained elevated for decades. This suggests that temporary shocks to female labor market prospects can propagate into long-run poverty through endogenous adjustments of marriage-quality thresholds.

Godard, Mathilde (author)
Nordström Skans, OskarUppsala universitet,Nationalekonomiska institutionen,Institutet för arbetsmarknadspolitisk utvärdering (IFAU),University of Oslo, Norway; IZA, Bonn, Germany(Swepub:uu)oskanord (author)
Uppsala universitetInstitutet för arbetsmarknadspolitisk utvärdering (IFAU) (creator_code:org_t)

In:The Journal of human resources: University of Wisconsin Press58:40022-166X1548-8004

By the author/editor: Engdahl, Mattias; Godard, Mathilde; Nordström Skans, ...

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