Effects of Parental Death on Labor Market Outcomes and Gender Inequalities

Abstract

Nearly everyone experiences the death of a parent in adulthood, but little is known about the effects of parental death on adult children’s labor market outcomes and the underlying mechanisms. In this paper, we use Danish administrative data to examine the effects of losing a parent on individual labor market outcomes and its contribution to gender earnings inequalities. Our empirical design leverages the timing of sudden, first parental deaths, allowing us to focus on the health and family support channels. Our findings reveal enduring negative effects on the earnings of both adult sons and daughters…