The timing of parental unemployment and children’s academic achievement

In this study, I investigate the potential impact of parental unemployment on the academic achievement of children, with a particular focus on the child's age at the time of parental unemployment. While previous research has concentrated on isolated occurrences of unemployment, my study expands on this literature by examining the complete employment history of the parent over the child's life course and exploring how the effects of unemployment may vary based on similar past experiences. To achieve this, I combine population-wide data from the Danish administrative register with the results of mandatory Danish language tests administered in public schools since 2010 to determine whether parental unemployment affects academic performance at ages nine and fifteen. Using inverse probability treatment weighting of marginal structural models, I account for non-random unemployment occurrences and time-variant confounders that may partially mediate the effects of unemployment. My findings demonstrate that parental unemployment can have both persistent and immediate negative effects on children's academic achievement. Although no age period clearly emerges as especially sensitive to the impact of unemployment, the proximity of the unemployment event to the outcome measurement consistently results in a small negative effect on academic achievement. Additionally, the timing of unemployment appears to affect children's academic performance differently based on whether the mother or father experienced unemployment.