Job displacement among single mothers: effects on children's outcomes in young adulthood.

Abstract

Given the recent era of economic upheaval, studying the effects of job displacement has seldom been so timely and consequential. Despite a large literature associating displacement with worker well-being, relatively few studies focus on the effects of parental displacement on child well-being, and fewer still focus on implications for children of single-parent households. Moreover, notwithstanding a large literature on the relationship between single motherhood and children's outcomes, research on intergenerational effects of involuntary employment separations among single mothers is limited. Using 30 years of nationally representative panel data and propensity score matching methods, the authors find significant negative effects of job displacement among single mothers on children's educational attainment and social-psychological well-being in young adulthood. Effects are concentrated among older children and children whose mothers had a low likelihood of displacement, suggesting an important role for social stigma and relative deprivation in the effects of socioeconomic shocks on child well-being.