Parental Proximity and Earnings After Job Displacements

Board of Governors of the Federal Reserve System (U.S.), Patrick Coate, Pawel Krolikowski, Mike Zabek, National Council for Compensation Insurance, Federal Reserve Bank of Cleveland, Board of Governors of the Federal Reserve System (U.S.)
2019 Finance and Economics Discussion Series  
The earnings of young adults who live in the same neighborhoods as their parents completely recover after a job displacement, unlike the earnings of young adults who live farther away, which permanently decline. Nearby workers appear to benefit from help with childcare since grandmothers are less likely to be employed after their child's job displacement and since the earnings benefits are concentrated among young adults who have children. The result also suggests that parental employment
more » ... al employment networks improve earnings. Differences in job search durations, transfers of housing services, and geographic mobility, however, are too small to explain the result. JEL codes: J61, J64, R23.
doi:10.17016/feds.2019.062 fatcat:v6dp62pbw5fizji2ktiyhvykru