Applied Economics Seminar Series. "The Long Goodbye: Economic Effects of Early Parental Death" joint work with M. Prado (CBS) and B. Severgnini (CBS)
Published: 3 October 2024
23 October 2024. Professor Giacomo De Giorgi, University of Geneva
Professor Giacomo De Giorgi, IEE/GSEM, University of Geneva
"The Long Goodbye: Economic Effects of Early Parental Death" joint work with M. Prado (CBS) and B. Severgnini (CBS)
Wednesday, 23 October 2024. 15:00-16:30
Room 386AB, Adam Smith Business School
Abstract
Early life events are crucial determinants of individual life trajectories and long-term outcomes. Parental death is one of the most traumatic events, with potential irreversible consequences on a child development, and hence a large contributor to inequality in adulthood. Using Danish administrative data, we estimate that the accidental death of a parent when the offspring is younger than 28 years of age has substantial negative effects on permanent income, and in particular for sons. The timing of death is also important, with effects that are typically larger for earlier deaths, i.e., those occurring in the first 1,000 days of life or by age 6.
On average, we find a fall of 6% on permanent income, larger for sons at 8%, and, in the case of maternal death between the ages of 2 and 6, the effect is up to 21% and up to 30% if both parents die.
When examining the reasons behind these detrimental effects, we uncover evidence supporting a range of negative impacts on children's human capital development, such as diminished educational attainments, increased mental health challenges, and a penalizing geographical mobility.
Bio
I am a Professor at the IEE/GSEM University of Geneva, previously I was an Assistant Professor at the Department of Economics at Stanford University (2006-13), a visiting Professor at UC-Berkeley (2010-11). A Wesley Mitchell's visiting Professor at Columbia University (2012-13). From 2013 a Research Professor of ICREA-MOVE, Barcelona GSE and UAB. Senior Economist at the NY-Fed (2014-16). Since 2018 I am a Visiting Professor at UC-Irvine. Fellow of BREAD, CEPR, and IPA and former member of the NBER.
In the Spring of 2020, I co-launched the Virtual Development Economics Seminar Series (VDEV).
My work has appeared, among other outlets, in the American Economic Review, the Review of Economic Studies, the AEJ: Applied, the Journal of Public Economics, the Journal of the European Economic Association, the Economic Journal, the European Economic Review.
I work on Development Economics, Labor Economics, Household Finance.
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First published: 3 October 2024