The Impact of Family on Job Displacement and Recovery

Abstract

Rates of involuntary job loss (from plant closures, downsizing, and so on) have been increasing in the United States during the past 15 years. Using several cross-sectional surveys from the Current Population Survey, and longitudinal data from the Panel Study of Income Dynamics, this article demonstrates that the likelihood of job displacement differs according to marital status, the presence or absence of young children, and single-parenthood, even after controlling for employees' age, sex, race, education, industry, occupation, and other pertinent factors. Divorce is associated with the subsequent loss of their jobs. Conversely, job displacement also raises the risk of subsequent marital breakdown. Thus the waves of job displacement have not been neutral with regard to family structure. These findings are discussed in terms of theories of work-family conflicts.