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Living Arrangements, Doubling Up, and the Great Recession: Was This Time Different?

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  • Marianne Bitler
  • Hilary Hoynes

Abstract

The Great Recession marks the worst downturn since those of the early 1980s. A large literature considers how the public safety net responded to this shock. We instead consider the responsiveness of one dimension of the private safety net. Families can react to negative shocks by moving in with relatives or downsizing. We use across-state over-time variation to estimate the effects of cycles on living arrangements, paying particular attention to young adults. We find living arrangements are cyclical, but effects are small. Surprisingly given the press attention, we find no evidence that things are different in the Great Recession.

Suggested Citation

  • Marianne Bitler & Hilary Hoynes, 2015. "Living Arrangements, Doubling Up, and the Great Recession: Was This Time Different?," American Economic Review, American Economic Association, vol. 105(5), pages 166-170, May.
    • Handle: RePEc:aea:aecrev:v:105:y:2015:i:5:p:166-70
    Note: DOI: 10.1257/aer.p20151087
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    References listed on IDEAS

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    6. Greg Kaplan, 2014. "Business Cycles and Household Formation," 2014 Meeting Papers 82, Society for Economic Dynamics.
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    Cited by:

    1. Yi-Hsuan Lin & Chien-Wen Peng, 2019. "Married Young Adults Living with Parents -- An Analysis of Regional Differences," International Real Estate Review, Global Social Science Institute, vol. 22(3), pages 431-462.
    2. Yilan Xu, 2020. "Foreclosed American Dream? Parental Foreclosure and Young Adult Children’s Homeownership," Journal of Family and Economic Issues, Springer, vol. 41(3), pages 458-471, September.
    3. Hippolyte d'Albis & Karina Doorley & Elena Stancanelli, 2021. "Older mothers' employment and marriage stability when the nest is empty," PSE Working Papers halshs-03203063, HAL.
    4. Yi-Hsuan Lin & Chien-Wen Peng, 2019. "Married Young Adults Living with Parents -- An Analysis of Regional Differences," International Real Estate Review, Asian Real Estate Society, vol. 22(3), pages 433-464.
    5. Maggie R. Jones & Amy B. O’Hara, 2016. "Do Doubled-Up Families Minimize Household-Level Tax Burden?," National Tax Journal, National Tax Association;National Tax Journal, vol. 69(3), pages 613-640, September.
    6. Pinka Chatterji & Xiangshi Liu & Barış K. Yörük, 2022. "Health insurance and the boomerang generation: Did the 2010 ACA dependent care provision affect geographic mobility and living arrangements among young adults?," Contemporary Economic Policy, Western Economic Association International, vol. 40(2), pages 243-262, April.
    7. Stefania Albanesi & Rania Gihleb & Ning Zhang, 2022. "Boomerang College Kids: Unemployment, Job Mismatch and Coresidence," Working Papers 2022-038, Human Capital and Economic Opportunity Working Group.
    8. R. Kelly Raley & Inbar Weiss & Robert Reynolds & Shannon E. Cavanagh, 2019. "Estimating Children’s Household Instability Between Birth and Age 18 Using Longitudinal Household Roster Data," Demography, Springer;Population Association of America (PAA), vol. 56(5), pages 1957-1973, October.
    9. Cooper, Daniel & Luengo-Prado, María José, 2018. "Household formation over time: Evidence from two cohorts of young adults," Journal of Housing Economics, Elsevier, vol. 41(C), pages 106-123.
    10. Effrosyni Adamopoulou & Ezgi Kaya, 2018. "Young Adults Living with their Parents and the Influence of Peers," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(3), pages 689-713, June.
    11. Adriana M. Reyes, 2022. "Race and Ethnic Differences in Financial Dependency of Coresident Young Adults During Economic Recessions and Over Time," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 51-65, March.
    12. Christopoulou, Rebekka & Pantalidou, Maria, 2017. "The parental home as labor market insurance for young Greeks during the crisis," GLO Discussion Paper Series 158, Global Labor Organization (GLO).
    13. Biegert, Thomas & Özcan, Berkay & Rossetti Youlton, Magdalena, 2023. "Household joblessness in US metropolitan areas during the COVID19 pandemic: polarization and the role of educational profiles," LSE Research Online Documents on Economics 118181, London School of Economics and Political Science, LSE Library.
    14. Christopoulou, Rebekka & Pantalidou, Maria, 2018. "Who saved Greek youth? Parental support to young adults during the great recession," LSE Research Online Documents on Economics 91954, London School of Economics and Political Science, LSE Library.
    15. Dettling, Lisa J. & Hsu, Joanne W., 2018. "Returning to the nest: Debt and parental co-residence among young adults," Labour Economics, Elsevier, vol. 54(C), pages 225-236.
    16. Gihleb, Rania & Giuntella, Osea & Lonsky, Jakub, 2023. "Dreaming of leaving the nest? Immigration status and the living arrangements of DACAmented," European Economic Review, Elsevier, vol. 156(C).
    17. Mommaerts, Corina & Truskinovsky, Yulya, 2020. "The cyclicality of informal care," Journal of Health Economics, Elsevier, vol. 71(C).
    18. Julie Zissimopoulos & Johanna Thunell & Stipica Mudrazija, 2020. "Parental Income and Wealth Loss and Transfers to Their Young Adult Children," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 316-331, June.
    19. Christopoulou, Rebekka & Pantalidou, Maria, 2022. "The parental home as labor market insurance for young Greeks during the Great Recession," Journal of Demographic Economics, Cambridge University Press, vol. 88(3), pages 313-350, September.
    20. Lisa Dettling, 2016. "Effects of entering adulthood during a recession," IZA World of Labor, Institute of Labor Economics (IZA), pages 242-242, April.
    21. Adamopoulou, Effrosyni, 2016. "Living Arrangements of the Youth: Determinants and Gender Differences/Patrones de convivencia de los jóvenes: Determinantes y diferencias por sexos," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 34, pages 35-44, Enero.
    22. Galárraga, Omar & Rana, Aadia & Rahman, Momotazur & Cohen, Mardge & Adimora, Adaora A. & Sosanya, Oluwakemi & Holman, Susan & Kassaye, Seble & Milam, Joel & Cohen, Jennifer & Golub, Elizabeth T. & Met, 2018. "The effect of unstable housing on HIV treatment biomarkers: An instrumental variables approach," Social Science & Medicine, Elsevier, vol. 214(C), pages 70-82.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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