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Financial stress, family relationships, and Australian youths’ transitions from home and school

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  • Deborah Cobb-Clark
  • David Ribar

Abstract

We analyze the effect of mothers’ and youths’ reports of family financial stress and relationship dissatisfaction on Australian youths’ transitions into adult roles. We find that mothers’ reports of financial stresses and borrowing constraints are associated with earlier transitions to inactivity, while youths’ reports of financial stresses are associated with earlier nest-leaving. Youths reporting unsatisfactory relationships with parents leave school and move out earlier than their peers, while unsatisfactory relationships between parents are associated with youths making later transitions. Overall, financial stress and dissatisfaction have independent associations with youths’ transitions and youths’ perspectives have different consequences to those of their mothers. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Deborah Cobb-Clark & David Ribar, 2012. "Financial stress, family relationships, and Australian youths’ transitions from home and school," Review of Economics of the Household, Springer, vol. 10(4), pages 469-490, December.
    • Handle: RePEc:kap:reveho:v:10:y:2012:i:4:p:469-490
    DOI: 10.1007/s11150-011-9133-6
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    References listed on IDEAS

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    8. Kooreman, P., 2007. "Time, money, peers, and parents : Some data and theories on teenage behavior," Other publications TiSEM 05026f0a-e418-4eb8-a483-7, Tilburg University, School of Economics and Management.
    9. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
    10. Peter Kooreman, 2007. "Time, money, peers, and parents; some data and theories on teenage behavior," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(1), pages 9-33, February.
    11. Bruce A. Weinberg, 2001. "An Incentive Model of the Effect of Parental Income on Children," Journal of Political Economy, University of Chicago Press, vol. 109(2), pages 266-280, April.
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    Cited by:

    1. John de New & David Ribar & Christopher Ryan & Clement Wong, 2020. "Financial Outcomes in Adolescence and Early Adulthood in Australian Longitudinal Data," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(1), pages 126-138, March.
    2. David C. Ribar, 2015. "Is Leaving Home a Hardship?," Southern Economic Journal, John Wiley & Sons, vol. 81(3), pages 598-618, January.
    3. Zhiming Cheng & Silvia Mendolia & Alfredo R. Paloyo & David A. Savage & Massimiliano Tani, 2021. "Working parents, financial insecurity, and childcare: mental health in the time of COVID-19 in the UK," Review of Economics of the Household, Springer, vol. 19(1), pages 123-144, March.
    4. Nicolas Hérault & Guyonne Kalb, 2016. "Intergenerational correlation of labor market outcomes," Review of Economics of the Household, Springer, vol. 14(1), pages 231-249, March.
    5. Robert Breunig & Syed Hasan & Boyd Hunter, 2019. "Financial Stress and Indigenous Australians," The Economic Record, The Economic Society of Australia, vol. 95(308), pages 34-57, March.
    6. Ferdi Botha & Barbara Broadway & John P. de New & Clement Wong, 2020. "Financial autonomy among emerging adults in Australia," Melbourne Institute Working Paper Series wp2020n30, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    7. Bas ter Weel & Tyas Prevoo, 2014. "The effect of family disruption on children's personality development: Evidence from British longitudinal data," CPB Discussion Paper 295, CPB Netherlands Bureau for Economic Policy Analysis.
    8. Melisa Bubonya & Deborah A. Cobb-Clark & Mark Wooden, 2017. "Job loss and the mental health of spouses and adolescent children," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-27, December.
    9. Bas ter Weel & Tyas Prevoo, 2014. "The effect of family disruption on children's personality development: Evidence from British longitudinal data," CPB Discussion Paper 295.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Botha, Ferdi & Ribar, David C., 2023. "For worse? Financial hardships and intra-household resource allocation among Australian couples," Economic Modelling, Elsevier, vol. 119(C).
    11. Prevoo, Tyas & ter Weel, Bas, 2014. "The Effect of Family Disruption on Children's Personality Development: Evidence from British Longitudinal Data," IZA Discussion Papers 8712, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Youths; Financial stress; Family relationships; D13; J13;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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