Parental job loss and children's educational attainment in black and white middle-class families

Objectives. We aim to understand why blacks are significantly less likely than whites to perpetuate their middle-class status across generations. To do so, we focus on the potentially different associations between parental job loss and youth's educational attainment in black and white middle-class families.Methods. We use data from the Panel Study of Income Dynamics (PSID), following those children “born” into the survey between 1968 and 1979 and followed through age 21. We conduct multivariate regression analyses to test the association between parental job loss during childhood and youth's educational attainment by age 21.Results. We find that parental job loss is associated with a lesser likelihood of obtaining any postsecondary education for all offspring, but that the association for blacks is almost three times as strong. A substantial share of the differential impact of job loss on black and white middle-class youth is explained by race differences in household wealth, long-run measures of family income, and, especially, parental experience of long-term unemployment.Conclusions. These findings highlight the fragile economic foundation of the black middle class and suggest that intergenerational persistence of class status in this population may be highly dependent on the avoidance of common economic shocks.     

Out with the Old,In with the Old: A Closer Look at Younger Versus Older Elderly Migration*

Objective. This research examines the migration behavior of the elderly, recognizing that the older and younger elderly may make different decisions and have different consequences for the states in which they live. Methods. Using U.S. Census migration flow data, we describe the movements of the younger and older elderly. Our econometric analysis brings together the wisdom of elderly migration research that focuses on motives (amenity vs. return/assistance) and the Tiebout‐related research that considers the effects of policy. Results. We find that all elderly age groups avoid moving to states with high estate/inheritance/gift taxes, although the effect weakens with age. Likewise, the younger elderly appear to be “shopping around” for destinations with a temperate climate and favorable government policies regarding income taxes and welfare spending, whereas the older elderly are more likely to be “driven out” of their origin state by a high cost of living and income and property taxes. Conclusions. Our findings suggest that both the patterns of migration and the factors that affect migration decisions differ between the younger and older elderly.     

Good Job,Good Life? Working Conditions and Quality of Life in Europe

Cross-national comparisons generally show large differences in life satisfaction of individuals within and between European countries. This paper addresses the question of whether and how job quality and working conditions contribute to the quality of life of employed populations in nine strategically selected EU countries: Finland, Sweden, the UK, the Netherlands, Germany, Portugal, Spain, Hungary, and Bulgaria. Using data from the European Quality of Life Survey 2003, we examine relationships between working conditions and satisfaction with life, as well as whether spillover or segmentation mechanisms better explain the link between work domain and overall life satisfaction. Results show that the level of life satisfaction varies significantly across countries, with higher quality of life in more affluent societies. However, the impact of working conditions on life satisfaction is stronger in Southern and Eastern European countries. Our study suggests that the issue of security, such as security of employment and pay which provides economic security, is the key element that in a straightforward manner affects people’s quality of life. Other working conditions, such as autonomy at work, good career prospects and an interesting job seem to translate into high job satisfaction, which in turn increases life satisfaction indirectly. In general, bad-quality jobs tend to be more ‘effective’ in worsening workers’ perception of their life conditions than good jobs are in improving their quality of life. We discuss the differences in job-related determinants of life satisfaction between the countries and consider theoretical and practical implications of these findings.     

Women’s economic capacity and children’s human capital accumulation

Programs that increase the economic capacity of poor women can have cascading effects on children’s participation in school and work that are theoretically undetermined. We present a simple model to describe the possible channels through which these programs may affect children’s activities. Based on a cluster-randomized trial, we examine how a program providing capital and training to women in poor rural communities in Nicaragua affected children. Children in beneficiary households are more likely to attend school 1 year after the end of the intervention. An increase in women’s influence on household decisions appears to contribute to the program’s beneficial effect on school attendance.