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

  • Deborah Cobb-Clark

    ()

  • David Ribar

    ()

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

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File URL: http://hdl.handle.net/10.1007/s11150-011-9133-6
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Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 10 (2012)
Issue (Month): 4 (December)
Pages: 469-490

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Handle: RePEc:kap:reveho:v:10:y:2012:i:4:p:469-490
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=109451

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  1. Leslie Whittington & H. Elizabeth Peters, 1996. "Economic incentives for financial and residential independence," Demography, Springer, vol. 33(1), pages 82-97, February.
  2. Cobb-Clark, Deborah A., 2008. "Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians," IZA Discussion Papers 3309, Institute for the Study of Labor (IZA).
  3. Shelly Lundberg & Jennifer Romich & Kwok Ping Tsang, 2007. "Decision Making By Children," Working Papers UWEC-2007-24, University of Washington, Department of Economics.
  4. 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.
  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. 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.
  7. 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.
  8. 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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