Ruhr Economic Papers

Ruhr Economic Papers #375

Sons‘ Unexpected Long Term Scarring due to Fathers‘ Unemployment

by Michael Kind and John P. Haisken-DeNew

RWI, RUB, RGS Econ, 10/2012, 19 S./p., 8 Euro, ISBN 978-3-86788-430-3 DOI: 10.4419/86788430

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Abstract

This study focuses on the long term effects of unemployment on subjective wellbeing in a family context for 17-24 year old sons living with at least one parent, using data from the German SOEP. As fathers enter unemployment, sons‘ subjective wellbeing is not only reduced immediately, but also 5 years into the future. As this future reduction remains unexpected by the sons, this suggests even higher true costs of unemployment than previously thought.

JEL-Classification: Z1, J64, J65, J13

Keywords: Life satisfaction; unemployment; intergenerational transmission; expectations

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