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Financial Stress, Family Conflict, and Youths' Successful Transition to Adult Roles

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Author Info

  • Cobb-Clark, Deborah A.

    ()
    (University of Melbourne)

  • Ribar, David C.

    ()
    (University of North Carolina, Greensboro)

Abstract

We analyze the effect of mothers' and youths' reports of family financial stress and conflict on youths' transitions into adult roles. We find that mothers’ reports of financial stresses and borrowing constraints are associated with earlier transitions to inactivity and public assistance, while youth reports of financial stresses are associated with earlier nest-leaving. Youths reporting conflict with parents leave school and move out earlier than their peers, while conflict between parents is associated with youth making later transitions. Overall, financial stress and conflict have independent effects on youths' transitions and youths' perspectives have different consequences to those of their mothers.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4618.

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Length: 42 pages
Date of creation: Dec 2009
Date of revision:
Publication status: Published as “Financial Stress, Family Conflict, and Australian Youths’ Transitions from Home and School” in Review of Economics of the Household, Vol. 11(4), December (2012), pp. 469 – 490.
Handle: RePEc:iza:izadps:dp4618

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Keywords: financial stress; family conflict; youths;

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References

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  1. Nicolas Beaulieu & Jean-Yves Duclos & Bernard Fortin & Manon Rouleau, 2005. "Intergenerational reliance on social assistance: Evidence from Canada," Journal of Population Economics, Springer, vol. 18(3), pages 539-562, 09.
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  3. Deborah A. Cobb-Clark, 2008. "Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(2), pages 160-176, 06.
  4. Pollak, Robert A, 1988. "Tied Transfers and Paternalistic Preferences," American Economic Review, American Economic Association, vol. 78(2), pages 240-44, May.
  5. Gottschalk, Peter, 1996. "Is the correlation in welfare participation across generations spurious?," Journal of Public Economics, Elsevier, vol. 63(1), pages 1-25, December.
  6. Lingxin Hao & V.Joseph Hotz & GingerZ. Jin, 2008. "Games Parents and Adolescents Play: Risky Behaviour, Parental Reputation and Strategic Transfers," Economic Journal, Royal Economic Society, vol. 118(528), pages 515-555, 04.
  7. Gary Solon & Mary Corcoran & Roger H. Gordon & Deborah Laren, 1987. "Sibling and Intergenerational Correlations in Welfare Program Participation," NBER Working Papers 2334, National Bureau of Economic Research, Inc.
  8. David Card & Thomas Lemieux, 2000. "Adapting to Circumstances (The Evolution of Work, School,and Living Arrangements among North American Youth)," NBER Chapters, in: Youth Employment and Joblessness in Advanced Countries, pages 171-214 National Bureau of Economic Research, Inc.
  9. McElroy, Marjorie B, 1985. "The Joint Determination of Household Membership and Market Work: The Case of Young Men," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 293-316, July.
  10. 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.
  11. Antel, John J, 1992. "The Intergenerational Transfer of Welfare Dependency: Some Statistical Evidence," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 467-73, August.
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Cited by:
  1. Nicolas Hérault & Rezida Zakirova, 2011. "Sheepskin Effects in the Returns to Education: Accounting for Enrolment and Completion Effects," Melbourne Institute Working Paper Series wp2011n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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