Does Intelligence Shield Children from the Effects of Parental Unemployment?

Job Market Paper
Author

Nurfatima Jandarova

Published

November 28, 2024

Abstract

Current literature offers several potential channels through which jobless parents can affect children. In this paper, I provide new evidence based on variation across intelligence of children. The results suggest that loss of human capital investments into children is the driving mechanism. I find that gap in education widens with higher intelligence, while the gap in labour-market outcomes narrows. I rationalise these findings using the skill formation and employer learning theories.

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