Moving Back Home: Insurance against Labor Market Risk
AbstractThis paper demonstrates that the option to move in and out of the parental home is a valuable insurance channel against labor market risk, which facilitates the pursuit of jobs with the potential for high earnings growth. Using monthly panel data, I document an empirical relationship among coresidence, individual labor market events, and subsequent earnings growth. I estimate the parameters of a dynamic game between youths and parents to show that the option to live at home can account for features of aggregate data for low-skilled young workers: small consumption responses to shocks, high labor elasticities, and low savings rates.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Political Economy.
Volume (Year): 120 (2012)
Issue (Month): 3 ()
Pages: 446 - 512
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JPE/
Other versions of this item:
- Greg Kaplan, 2010. "Moving back home: insurance against labor market risk," Staff Report 449, Federal Reserve Bank of Minneapolis.
- Greg Kaplan, 2010. "Moving back home: insurance against labor market risk," Working Papers 677, Federal Reserve Bank of Minneapolis.
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The parental home as unemployment insurance
by Economic Logician in Economic Logic on 2010-05-17 14:47:00
- Parents as Unemployment Insurance
by Mark Thoma in Economist's View on 2010-05-18 07:15:00
- Moving back home- Determining the household size!
by paragwaknis in Musings of the Sorts on 2013-05-07 04:50:57
- Jonathan Heathcote & Kjetil Storesletten & Giovanni L. Violante, 2009.
"Quantitative macroeconomics with heterogeneous households,"
420, Federal Reserve Bank of Minneapolis.
- Jonathan Heathcote & Kjetil Storesletten & Giovanni L. Violante, 2009. "Quantitative Macroeconomics with Heterogeneous Households," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 319-354, 05.
- Jonathan Heathcote & Kjetil Storesletten & Giovanni L. Violante, 2009. "Quantitative Macroeconomics with Heterogeneous Households," NBER Working Papers 14768, National Bureau of Economic Research, Inc.
- Matthew T. Johnson, 2010. "Borrowing Constraints, College Enrollment, and Delayed Entry," Working Papers 2011-006, Human Capital and Economic Opportunity Working Group, revised Sep 2012.
- Koehne, Sebastian & Kuhn, Moritz, 2012.
"Should unemployment insurance be asset-tested?,"
36973, University Library of Munich, Germany.
- Sebastian Koehne & Moritz Kuhn, 2013. "Should Unemployment Insurance be Asset-Tested," CESifo Working Paper Series 4324, CESifo Group Munich.
- Koehne, Sebastian & Kuhn, Moritz, 2013. "Should Unemployment Insurance Be Asset-Tested?," IZA Discussion Papers 7488, Institute for the Study of Labor (IZA).
- Koehne, Sebastian & Kuhn, Moritz, 2012. "Should unemployment insurance be asset-tested?," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 66056, Verein für Socialpolitik / German Economic Association.
- Moritz Kuhn & Sebastian Koehne, 2012. "Should unemployment insurance be asset-tested?," 2012 Meeting Papers 850, Society for Economic Dynamics.
- Effrosyni Adamopoulou & Ezgi Kaya, 2013. "Young adults living with their parents and the influence of peers," Economics Working Papers we1310, Universidad Carlos III, Departamento de Economía.
- Maria Concetta Chiuri & Daniela Del Boca, 2009.
"Home-leaving Decision of Daughters and Sons,"
Carlo Alberto Notebooks
136, Collegio Carlo Alberto.
- Sekyu Choi, 2010. "Fertility Risk in the Life-Cycle," 2010 Meeting Papers 594, Society for Economic Dynamics.
- Greg Kaplan & Giovanni L. Violante, 2009.
"How Much Consumption Insurance Beyond Self-Insurance?,"
NBER Working Papers
15553, National Bureau of Economic Research, Inc.
- Greg Kaplan & Giovanni L. Violante, 2010. "How Much Consumption Insurance beyond Self-Insurance?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 53-87, October.
- Emma Tominey, 2010. "The Timing of Parental Income and Child Outcomes: The Role of Permanent and Transitory Shocks," CEE Discussion Papers 0120, Centre for the Economics of Education, LSE.
- Kai Liu, 2010. "Wage Risk, On-the-job Search and Partial Insurance," 2010 Meeting Papers 1136, Society for Economic Dynamics.
- Cobb-Clark, Deborah A. & Gorgens, Tue, 2012.
"Parents' Economic Support of Young-Adult Children: Do Socioeconomic Circumstances Matter?,"
IZA Discussion Papers
6376, Institute for the Study of Labor (IZA).
- Deborah Cobb-Clark & Tue Gørgens, 2012. "Parents' Economic Support of Young-Adult Children: Do Socioeconomic Circumstances Matter?," Melbourne Institute Working Paper Series wp2012n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Hernan Winkler, 2011. "The Effect of Homeownership on Geographic Mobility and Labor Market Outcomes," 2011 Meeting Papers 196, Society for Economic Dynamics.
- Lagakos, David & Ordoñez, Guillermo L., 2011. "Which workers get insurance within the firm?," Journal of Monetary Economics, Elsevier, vol. 58(6), pages 632-645.
- Gianluca Violante & Greg Kaplan, 2008. "How Much Insurance in Bewley Models?," 2008 Meeting Papers 522, Society for Economic Dynamics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.