"Parental Job Loss and Geographic Mobility"
Abstract
Using restricted Census microdata, we examine how the location of parental job loss affects children's mobility, neighborhood quality, and human capital. Following job loss, children experience a permanent rise in commuting zone outmigration. Without accounting for the location of the job loss, we find that this mobility leads children to worse neighborhoods with insignificant changes to college attendance. However, this masks potential benefits from job loss-induced outmigration: families in lower opportunity areas have greater potential gains from leaving than those in higher opportunity areas. Exploiting labor market scarring from the Great Recession, we show that children whose parents lost jobs in scarred markets experience greater outmigration, improved neighborhood quality, and increased college attendance.