Unemployment’s Far-Reaching Effects

by WIZ

Ezra Klein digs into a few studies that exposes the health and educational pains inflicted on pupils and families as a result of unemployment:

Last year, Mike Konczal flagged a 2009 study by Ann Huff Stevens and Jessamyn Schaller of UC-Davis that examined the relationship between parental job loss and children’s academic achievement, drawing on data about job loss and grade retention from 1996, 2001 and 2004 panels of the Survey of Income and Program Participation:

We find that a parental job loss increases the probability of children’s grade retention by 0.8 percentage points, or around 15 percent. After conditioning on child fixed effects, there is no evidence of significantly increased grade retention prior to the job loss, suggesting a causal link between the parental employment shock and children’s academic difficulties. These effects are concentrated among children whose parents have a high school education or less.

 

In the end, the researchers concluded, “one percentage point higher unemployment rate leads to a 0.3 percentage point increase in the probability that a child repeats a grade.” If this is true, Konczal points out, the cumulative impact of unemployment is staggering. “There are roughly 55 million students in K-12 in the country right now. If unemployment is 1% higher that means, roughly, 165,000 additional years of schooling will be repeated,” he writes.

But just as children are at higher risk of underachieving, education budgets are being slashed across the country as the economy remains anemic and the politics of austerity have taken hold. It’s a continuous pile-up that could have lasting damage that goes well beyond sheer employment numbers.

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One Comment to “Unemployment’s Far-Reaching Effects”

  1. Just another example of the far reaching implications of a poor economy, too-few jobs, and a struggling education system.

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