Academic journal article Monthly Labor Review

With No Jobs, Young People Move Home

Academic journal article Monthly Labor Review

With No Jobs, Young People Move Home

Article excerpt

In the current economic climate, graduation from high school or college no longer goes hand in hand with the traditional transition to independence: moving out on one's own. Young jobseekers are among the hardest hit by the recession, with 18- to 24-year-olds having the highest unemployment rates since the 1950s. As apartment rental costs increase and jobs remain scarce, many young people have been forced to move back to (or remain at) their parents' houses--an important way in which the family unit insures against labor market shocks.

As compared with youth in other countries, young people in the United States generally move out of their parents' homes at an early age, but they are thought to be more apt to move back repeatedly after they leave. Despite a large amount of anecdotal evidence supporting this claim, economist Greg Kaplan found that there are not many data on parent-youth living arrangements after young people leave home for the first time. Kaplan's study entitled "Boomerang Kids: Labor Market Dynamics and Moving Back Home" (Federal Reserve Bank of Minneapolis, Working Paper 675, October 2009) examines the relationship--and determines a link--between the living arrangements of young people who do not go to college and labor market outcomes in the United States.

Using data from the National Longitudinal Survey of Youth 1997, Kaplan draws two central conclusions from his study. …

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