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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 Melbourne)

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. Becker, Sascha O. & Bentolila, Samuel & Fernandes, Ana & Ichino, Andrea, 2005. "Job Insecurity and Youth Emancipation: A Theoretical Approach," CEPR Discussion Papers 5339, C.E.P.R. Discussion Papers.
  2. Gottschalk, Peter, 1996. "Is the correlation in welfare participation across generations spurious?," Journal of Public Economics, Elsevier, vol. 63(1), pages 1-25, December.
  3. David Card & Thomas Lemieux, 1997. "Adapting to Circumstances: The Evolution of Work, School, and Living Arrangements Among North American Youth," Working Papers 765, Princeton University, Department of Economics, Industrial Relations Section..
  4. 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.
  5. 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.
  6. Becker, Sascha O. & Bentolila, Samuel & Fernandes, Ana & Ichino, Andrea, 2005. "Youth Emancipation and Perceived Job Insecurity of Parents and Children," IZA Discussion Papers 1836, Institute for the Study of Labor (IZA).
  7. Lingxin Hao & V. Joseph Hotz & Ginger Z. Jin, 2005. "Games Parents and Adolescents Play: Risky Behaviors, Parental Reputation, and Strategic Transfers," NBER Working Papers 11872, National Bureau of Economic Research, Inc.
  8. 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.
  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. 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.
  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.
  12. Deborah A. Cobb-Clark, 2008. "Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians," CEPR Discussion Papers 568, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  13. Pollak, Robert A, 1988. "Tied Transfers and Paternalistic Preferences," American Economic Review, American Economic Association, vol. 78(2), pages 240-44, May.
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Cited by:
  1. Piotr Bialowolski & Dorota Weziak-Bialowolska, 2014. "The Index of Household Financial Condition, Combining Subjective and Objective Indicators: An Appraisal of Italian Households," Social Indicators Research, Springer, vol. 118(1), pages 365-385, August.
  2. 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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