The Long-Term Impact of Children's Disabilities on Families

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The Long-Term Impact of Children's Disabilities on Families

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dc.contributor.author Gunnsteinsson, Snaebjorn
dc.contributor.author Steingrimsdottir, Herdis
dc.date.accessioned 2019-07-04T14:01:46Z
dc.date.available 2019-07-04T14:01:46Z
dc.date.issued 2019-07-04
dc.identifier.uri http://hdl.handle.net/10398/9745
dc.description.abstract Childhood disability is a major health shock that affects parents early in their working life. We estimate its impact on parents’ career trajectories, their balance sheets, and major life decisions using detailed register data from Denmark. To identify the causal effect of childhood disability we use an event study approach, where we control for a rich set of pre-birth variables and focus on conditions that have no or weak associations with socioeconomic determinants. We find that having a child with a disability has strong negative impact on mothers’ earnings. The effect is persistent and the wage penalty appears to grow over time. Fathers’ earnings are also affected but the impact is notably smaller. We find that both parents are less likely to be employed in the long run and are less likely to ascend to top executive positions. The long-term structure of the household is also affected as subsequent fertility is lower and partnership dissolution is more common. Finally, despite this financial shock, long term net worth of families is not affected or may be positively affected, potentially due to help from government transfers and lower cost associated with having fewer other children, or due to a stronger savings motive for the long term care of the disabled child. en_US
dc.format.extent 49 en_US
dc.language eng en_US
dc.relation.ispartofseries Working Paper;06-2019
dc.subject.other Disability en_US
dc.subject.other Children en_US
dc.subject.other Child en_US
dc.subject.other Insurance en_US
dc.subject.other Earnings en_US
dc.subject.other Income en_US
dc.subject.other Labor force participation en_US
dc.subject.other Fertility en_US
dc.title The Long-Term Impact of Children's Disabilities on Families en_US
dc.type wp en_US
dc.accessionstatus modt19jul04 soma en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut en_US
dc.contributor.departmentshort ECON en_US
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentukshort ECON en_US
dc.publisher.city Frederiksberg en_US
dc.publisher.year 2019 en_US


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