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Effects of entering adulthood during a recession

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  • Lisa Dettling

    (Federal Reserve Board, USA)

Abstract

Current cohorts of young adults entered adulthood during an international labor and housing market crisis of a severity not experienced since the Great Depression. Concerns have arisen over the impacts on young adults’ employment, income, wealth, and living arrangements, and about whether these young adults constitute a “scarred generation” that will suffer permanent contractions in financial well-being. If true, knowing the mechanisms through which young adults’ finances have been affected has important implications for policy measures that could improve the financial well-being of today’s young adults in the present and future.

Suggested Citation

  • Lisa Dettling, 2016. "Effects of entering adulthood during a recession," IZA World of Labor, Institute of Labor Economics (IZA), pages 242-242, April.
  • Handle: RePEc:iza:izawol:journl:y:2016:n:242
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    References listed on IDEAS

    as
    1. Kahn, Lisa B., 2010. "The long-term labor market consequences of graduating from college in a bad economy," Labour Economics, Elsevier, vol. 17(2), pages 303-316, April.
    2. Joseph G. Altonji & Lisa B. Kahn & Jamin D. Speer, 2016. "Cashier or Consultant? Entry Labor Market Conditions, Field of Study, and Career Success," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 361-401.
    3. 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.
    4. Lisa J. Dettling & Joanne W. Hsu, 2014. "The State of Young Adults’ Balance Sheets: Evidence from the Survey of Consumer Finances," Review, Federal Reserve Bank of St. Louis, vol. 96(4), pages 305-330.
    5. Ulrike Malmendier & Stefan Nagel, 2011. "Depression Babies: Do Macroeconomic Experiences Affect Risk Taking?," The Quarterly Journal of Economics, Oxford University Press, vol. 126(1), pages 373-416.
    6. Lisa J. Dettling & Joanne W. Hsu, 2014. "Returning to the Nest: Debt and Parental Co-residence Among Young Adults," Finance and Economics Discussion Series 2014-80, Board of Governors of the Federal Reserve System (U.S.).
    7. Ferreira, Fernando & Gyourko, Joseph & Tracy, Joseph, 2010. "Housing busts and household mobility," Journal of Urban Economics, Elsevier, vol. 68(1), pages 34-45, July.
    8. Renata Bottazzi & Thomas F. Crossley & Matthew Wakefield, 2015. "First-time House Buying and Catch-up: A Cohort Study," Economica, London School of Economics and Political Science, vol. 82, pages 1021-1047, December.
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    young adults; net worth; home ownership; unemployment; income; parental co-residence; Great Recession;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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