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

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  • Deborah A. Cobb-Clark
  • David C. Ribar

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.

Suggested Citation

  • Deborah A. Cobb-Clark & David C. Ribar, 2009. "Financial Stress, Family Conflict, and Youths’ Successful Transition to Adult Roles," CEPR Discussion Papers 627, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:dpaper:627
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    File URL: https://www.cbe.anu.edu.au/researchpapers/CEPR/DP627.pdf
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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: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 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.
    3. Piotr Bialowolski & Dorota Weziak-Bialowolska & Eileen McNeely, 2021. "The Role of Financial Fragility and Financial Control for Well-Being," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 1137-1157, June.

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    More about this item

    Keywords

    youths; financial stress; family conflict;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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