Labor market position among care leavers and their matched peers: A longitudinal comparative study

Abstract

Background: The adverse labor market experience of care leavers is well-documented. Care leavers lag behind their peers in the general population in all employment aspects and even fall short compared to young people from low-income families. Yet, there are only very few comparative longitudinal studies on care leavers' relative labor market position (LMP).

Objectives: To examine and predict: (1) LMP, an integrative measure of labor market connectedness and earning level, among care leavers and a matched comparison group from age 22 to 34; (2) gender differences in LMP among care leavers and their same-sex matched peers.

Participants and setting: Participants were alumni of youth villages in Israel from 13 consecutive birth cohorts (20,758) and a double-sized matched comparison group (41,510).

Methods: Based on longitudinal administrative records bivariate analyses examined differences in age-related LMP between care leavers and their matched peers. Gender-stratified analyses were also performed. A multilevel multinomial model predicted LMP throughout the age span.

Results: Care leavers were less likely than their matched peers to be disconnected from employment. The rate of low-wage earners was similar in the two groups. Male care leavers performed better than their matched peers, while female care leavers performed worse than their matched peers. Controlling for pre-care factors, in-care and post-care achievements and experiences, both men and women care leavers performed better than their matched peers.

Conclusions: Labor market connectedness and relative earning progression are shaped by pre-care factors, in-care and post-care achievements and experiences. Three sub-groups of care leavers and similar young people were identified based on their characteristics.

Keywords: Administrative data; Care leavers; Earnings; Employment; Israel; Life course perspective; Propensity score matching.