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UPA Perpustakaan Universitas Jember

The long-term effect of childhood poverty

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This paper uses variation among siblings to identify the consequences of
childhood poverty on both labour and marriage market outcomes. In the labour market,
individuals who experienced childhood poverty are found to have lower earnings
and lower labour market attachment and to have worse jobs both vertically in terms
of low-paying industries and horizontally in terms of job positions. In the marriage
market, childhood poverty is found to have negative consequences for the probability
of marriage, cohabitation, and having children around the age of 30. The effect
sizes are found to exhibit an inverse u-shape in the age of the child, peaking during
adolescence. Results on educational choices suggest that the mechanisms behind
these results can be that childhood poverty affects the skill formation, networks, and
decision making of the child.

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