Friday, August 6, 2010
Kane, Spizman, Rodgers, & Gaskins: “The Effect of the Loss of a Parent on the Future Earnings of a Minor Child”
John C. Kane, Lawrence M. Spizman, James D. Rodgers, and Rick R. Gaskins have posted The Effect of the Loss of a Parent on the Future Earnings of a Minor Child 36 Eastern Economic Journal 370 (2010) on SSRN. Here is the abstract:
We quantify the effect of a parent's absence on a child's future earnings. A parent's absence because of separation or divorce reduces a child's lifetime earnings between 3 and 12 percent. Lifetime educational attainment is adversely affected by between 2 and 4 percent if a parent of the same gender as the child dies (a smaller impact than if absence is because of separation or divorce). No such adverse effect is found if a girl's father or a boy's mother dies. We conclude that it is sensible that lifetime earnings loss to children not be estimated in a parent's wrongful death case.