The Effect of Paternal Job Loss on Intergenerational Mobility in Educational and Occupational Choice

Abstract: This thesis analyses the effect of father’s job displacement on his children’s occupational and educational choices. I use Finnish administrative data covering years 1989-2020 and identify downsizing as well as closing workplaces to find exogenous job losses. Despite identifying negative and persistent effects on displaced fathers, the found impact on their children’s career choices are limited and sensitive. I estimate that a paternal displacement decreases the probability of following father’s educational path by 0.5 percentage points. No effects on occupational mobility or educational applications are found. I establish pro-cyclical displacement costs for fathers that, however, are not found to translate into differences in the effects on the next generation.