Parents' Health and Children's Future Employment Status

HwaJung Choi, University of Michigan
Ann Ferris, University of Michigan

This paper examines the association between parental health and children's future employment status. To measure a long-term impact, we explore two representative cohort studies –Panel Study of Income Dynamics (PSID) and Health and Retirement Study (HRS). Empirical results indicate that having unhealthy parents significantly lowers a child’s probability of working in the labor market later, but increases a daughter’s probability of looking for job in her adulthood. To understand a full mechanism of parental health impact on children’s behavioral responses, it is necessary to examine other covariates and pathways such as family structure, educational attainment, marriage and public policy.