òòò½Íø Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Effects of Parental Death on Labor Market Outcomes
òòò½Íø Review
(pp. 1811–36)
Abstract
We use Danish administrative data to examine the effects of parental death on labor market outcomes. Leveraging the timing of sudden, first parental deaths and a matched-control difference-in-differences strategy, we find that men's earnings decline by 2 percent, while women's earnings decline by 3 percent following a parental death. Both women and men experience mental health deterioration, leading to increased use of psychological assistance and prescriptions for mental health conditions and opioids. Women with young children experience a comparatively larger earnings decline (around 4 percent) likely due to the loss of informal childcare.Citation
Jensen, Mathias Fjællegaard, and Ning Zhang. 2026. "Effects of Parental Death on Labor Market Outcomes." òòò½Íø Review 116 (5): 1811–36. DOI: 10.1257/aer.20240432Additional Materials
JEL Classification
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- I12 Health Behavior
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J16 Economics of Gender; Non-labor Discrimination
- J31 Wage Level and Structure; Wage Differentials