Background of the study
There is solid evidence that job loss is often followed by significant and long-term decreases in individual incomes (Jacobson et al., 1993; Stevens, 1997). Oreopoulos et al. (2008) also discovered that parental job loss has an impact on their children's wages and welfare benefits when they are young adults. 1 The authors viewed these results as inter generational income effects that might be causal. However, this study was unable to reveal the mechanisms through which parental job loss and subsequent income decreases may effect children's wages. An income impact is one of the key ways in which parental job loss may influence the educational results of children. The significant and long-term loss of parental income as a result of job loss may limit parents' capacity to support their children's educational goals. University is expensive in terms of both direct expenditures (tuition fees, books) and lost income. Parental transfers may help kids pay for these direct fees as well as living expenses. If student loans are unavailable, loan limitations are insufficient to pay expenditures, or students are unable to take out student loans due to risk aversion or debt aversion, transfers are critical. If parental employment loss has an impact on youth enrollment outcomes via a parental income effect, it means that youth may encounter financial or credit limitations while pursuing higher education. Job loss may also have an impact on children's results through disrupting family functioning and hurting parents' mental health. Individuals who have lost their jobs have worse mental (McKee-Ryan, Song et al. 2005) and physical (Sullivan and von Wachter 2009) health than those who have not. Longitudinal studies of families before and after a parent's job loss have shown that job loss results in lower family functioning and worse parent-child relationships. Parental mental health issues and strained parent-child connections have both been connected to poor child adjustment and poor academic performance (Elder, Eccles et al. 1995; McLoyd 1998). While it is possible that job loss will cause parents to spend more time with their children, which may benefit their academic achievement, research has shown that unemployed parents do not spend more time with their children than employed parents, either in general (Edwards 2008) or specifically on education-related activities that may lead to greater academic achievement (Levine 2011).
Statement of the problem
Children's reactions to parental job loss are determined by how they perceive and interpret it. As a result, a child's age at the time of their parents' job loss may help to lessen the impacts. Parent unemployment is connected with weaker preschool skills for younger children who follow their parents' views and actions without inquiry (Haveman et al. 1991). This is shown in poorer test scores and school disengagement among younger students, setting the scene for a negative cycle of educational success in the future ( Elder, 1999). Younger children are more likely to have physical health issues as a result of their parents' unemployment, which may have a severe impact on their educational performance later in life. Likewise, research on older age cohorts demonstrate a lesser influence on children's educational success (Haveman et al. 1991). Some think that once children reach adolescence, they either imitate their parents' attitudes and behaviors or oppose and disassociate from them as they mature (Bandura 1986). Because of two possible offsetting behavioral effects, the direction of the impact among older children in the context of parent unemployment will be equivocal. For starters, older children may learn from their parents' unemployment and the hardships that come with it in order to prevent future periods of unemployment. In this regard, obtaining a higher education is seen as a method for avoiding future unemployed periods. Older children, on the other hand, may be able to adjust to a life without employment and bear the stigma that comes with not having a career in the future. As a result, their educational ambitions and school involvement will be lowered, resulting in reduced educational achievement. As a result, it is necessary to investigate parental employment loss and its impact on their children's educational attainment.
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