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The Impact of Children’s Health Shocks on Parents’ Labor Earnings and Mental Health

Year: 2024

Type: article

Abstract: We provide novel evidence on the causal impact of a child’s health shock on parents’ labor market outcomes. Using high-quality Finnish and Norwegian administrative data, we construct counterfactuals for treated households with families who experience the same shock in later years. We find a sharp break in mothers’ earnings trajectories after the event, while we do not find significant effects for fathers. Our findings do not align with the hypothesis of household specialization explaining these adjustments. Instead, the evidence suggests that these changes are driven by increased caregiving demands, with mothers bearing the primary burden. We also document a substantial impact on parents’ mental well-being.

Source: The Review of Economics and Statistics

DOI: 10.1162/rest_a_01499

Authors: Anne-Lise Breivik, Ana Costa-Ramón

Institutions: University of Bergen, University of Zurich

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Good health and well-being, Reduced inequalities, No poverty

Open Access status: green

OpenAlex ID: W4402839873