# The Impact of an Early Career Shock on Intergenerational Mobility

**Published:** 2024-04-08  
**Categories:** Academic Publications  
**URL:** https://www.etla.fi/en/publications/academic-publications/the-impact-of-an-early-career-shock-on-intergenerational-mobility/

#### Abstract

Children’s and parent’s incomes are highly correlated, yet little is known about how early career shocks contribute to this correlation. This paper focuses on a consequential labor market shock: job loss. We document three new results. First, adult children born into the bottom 20% of the income distribution have double the unemployment following job loss compared with those from the top 20%, and 154% higher earnings losses. Second, this increases the rank-rank correlation 30% for those impacted. Third, richer parents provide career opportunities to their adult children after job loss, consistent with advantages from wealthy parents persisting well into adulthood.

*Journal of Labour Economics.*

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## Additional Information

**Kirjoittajat:** Kaila, Martti - Nix, Emily - Riukula, Krista

**Publication Research:** No

**Kansikuva:** No

**Lataa Pdf:** No

**Paivays:** 08.04.2024

**Sivuja:** 73

**Kieli:** en

**Sarja:** Other articles

https://doi.org/10.1086/730322

**Saatavuus:** 2

Journal of Labour Economics