Gender differences in intergenerational effects of laid-off parents

This paper evaluates the gender differences in intergenerational effects of laid-off parents on children’s adult outcomes. Using the China Health and Nutrition Survey (CHNS) over the period from 1991 to 2015, we construct the children’s lengths of exposure to fathers’/mothers’ layoffs from state-owned enterprises (SOEs) retrenchment starting in the 1990 s before they turn 18 years old. We find that, when experiencing fathers’ layoffs for a longer period, only girls suffer a significant reduction in education outcomes and are hence more likely to have manual occupations; when suffering mothers’ layoffs for a longer period, boys’ education levels increase, but this advantage does not reduce their probability of having manual occupations. Although the gender difference in children’s education persists in their occupations, girls do not underperform in adult earnings compared to boys with similar family backgrounds. Instead, for girls with manual occupations, fathers’ layoffs increase their gardening income.