IDEAS home Printed from https://ideas.repec.org/p/lis/liswps/456.html
   My bibliography  Save this paper

Failure to Launch: Cross-National Trends in the Transition to Economic Independence

Author

Listed:
  • Lisa Bell
  • Janet Gornick
  • Timothy Smeeding
  • Gary Burtless

Abstract

We analyze trends in the age of economic independence in six industrialized countries, Belgium, Canada, Germany, Italy, the United Kingdom, and the United States. The paper compares trends in the household living arrangements, employment rates, earnings levels, and net incomes as young adults rise in age from 18 to 34 years old. Our results show a picture of generally declining independent living and economic self-sufficiency ('failure to launch') among 18-34 year-old men and women in their early 20s from the mid-1980s to 1995-2000. The exceptions are women in their late 20s and early 30s , who have somewhat improved prospects for economic independence, although from a starting level that was well below that observed among men of the same age. North America (the United States and Canada ) and to some extent the U.K. offer partial exceptions to this general pattern. Between the mid-1980s and 2000 employment rates improved among young Americans in their late 20s and early 30s, and earnings levels either remained stable or increased modestly. The stability of U.S. employment levels helped to offset an apparent reduction in male hourly wage rates for this group , giving 26-34 year-old American men either larger gains or smaller losses in economic self-sufficiency compared to those experienced by their counterparts in continental Europe. In addition, young women in the U.S. who were 26 and older saw bigger improvements in wage self-sufficiency than most of their counterparts in continental Europe. In the closing section we speculate on the possible causes for such changes.

Suggested Citation

  • Lisa Bell & Janet Gornick & Timothy Smeeding & Gary Burtless, 2007. "Failure to Launch: Cross-National Trends in the Transition to Economic Independence," LIS Working papers 456, LIS Cross-National Data Center in Luxembourg.
  • Handle: RePEc:lis:liswps:456
    as

    Download full text from publisher

    File URL: http://www.lisdatacenter.org/wps/liswps/456.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Neyer, Gerda, 2003. "Family Policies and Low Fertility in Western Europe," Discussion Paper 161, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    2. Maite Martínez-Granado & Javier Ruiz-Castillo, 2002. "The decisions of Spanish youth: A cross-section study," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(2), pages 305-330.
    3. Paola Giuliano, 2007. "Living Arrangements in Western Europe: Does Cultural Origin Matter?," Journal of the European Economic Association, MIT Press, vol. 5(5), pages 927-952, September.
    4. George J. Borjas & Lawrence F. Katz, 2007. "The Evolution of the Mexican-Born Workforce in the United States," NBER Chapters, in: Mexican Immigration to the United States, pages 13-56, National Bureau of Economic Research, Inc.
    5. Manacorda, Marco & Moretti, Enrico, 2002. "Intergenerational transfers and household structure: why do most Italian youths live with their parents?," LSE Research Online Documents on Economics 20078, London School of Economics and Political Science, LSE Library.
    6. Timothy Smeeding, 2006. "Poor People in Rich Nations: The United States in Comparative Perspective," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 69-90, Winter.
    7. Ghidoni, Michele, 2002. "Determinants of young Europeans' decision to leave the parental household," Royal Economic Society Annual Conference 2002 85, Royal Economic Society.
    8. Gerda R. Neyer, 2003. "Family policies and low fertility in Western Europe," MPIDR Working Papers WP-2003-021, Max Planck Institute for Demographic Research, Rostock, Germany.
    9. Greg Duncan & Johanne Boisjoly & Timothy Smeeding, 1996. "Economic mobility of young workers in the 1970s and 1980s," Demography, Springer;Population Association of America (PAA), vol. 33(4), pages 497-509, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Louis Chauvel, 2008. "Comparing Welfare Regime Changes: Living Standards and the Unequal Life Chances of Different Birth Cohorts," LIS Working papers 500, LIS Cross-National Data Center in Luxembourg.
    2. Barbara E. Hopkins, 2013. "Gender and provisioning under different capitalisms," Chapters, in: Deborah M. Figart & Tonia L. Warnecke (ed.), Handbook of Research on Gender and Economic Life, chapter 7, pages 93-112, Edward Elgar Publishing.
    3. Maria Sironi, 2018. "Economic Conditions of Young Adults Before and After the Great Recession," Journal of Family and Economic Issues, Springer, vol. 39(1), pages 103-116, March.
    4. Terri Friedline & Ilsung Nam & Vernon Loke, 2014. "Households’ Net Worth Accumulation Patterns and Young Adults’ Financial Health: Ripple Effects of the Great Recession?," Journal of Family and Economic Issues, Springer, vol. 35(3), pages 390-410, September.
    5. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2007. "Distributional Effects of Public Education Transfers in Seven European Countries," Papers WP207, Economic and Social Research Institute (ESRI).
    6. LUPPI, FRANCESCA & Rosina, Alessandro & Sironi, Emiliano, 2020. "On the impact of COVID-19 pandemic on the intention to leave the parental home," SocArXiv 9y6s5, Center for Open Science.
    7. Friedline, Terri & Elliott, William, 2013. "Connections with banking institutions and diverse asset portfolios in young adulthood: Children as potential future investors," Children and Youth Services Review, Elsevier, vol. 35(6), pages 994-1006.
    8. Cristina Barceló & Ernesto Villanueva, 2018. "The risk of job loss, household formation and housing demand: evidence from differences in severance payments," Working Papers 1849, Banco de España.
    9. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2008. "Short-run distributional effects of public education transfers to tertiary education students in seven European countries," Education Economics, Taylor & Francis Journals, vol. 16(3), pages 275-288.
    10. Ting-Syuan Lin & Elena Cottini & Agnese Vitali, 2013. "Youth prospects in a time of economic recession," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(36), pages 949-962.
    11. Arnstein Aassve & Elena Cottini & Agnese Vitali, 2013. "Youth Vulnerability in Europe during the Great Recession," Working Papers 057, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    12. Terri Friedline & Robert Hughes & Paul Johnson, 2014. "Toward Healthy Balance Sheets: Are Savings Accounts a Gateway to Young Adults’ Asset Diversification and Accumulation?," Review, Federal Reserve Bank of St. Louis, vol. 96(4), pages 359-389.
    13. Marla McDaniel & Daniel Kuehn, 2013. "What Does a High School Diploma Get You? Employment, Race, and the Transition to Adulthood," The Review of Black Political Economy, Springer;National Economic Association, vol. 40(4), pages 371-399, December.
    14. Terri Friedline & Stacia West, 2016. "Financial Education is not Enough: Millennials May Need Financial Capability to Demonstrate Healthier Financial Behaviors," Journal of Family and Economic Issues, Springer, vol. 37(4), pages 649-671, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Paola Giuliano, 2007. "Living Arrangements in Western Europe: Does Cultural Origin Matter?," Journal of the European Economic Association, MIT Press, vol. 5(5), pages 927-952, September.
    2. Anne Laferrere, 2005. "Leaving the Nest : The Interaction of Parental Income and Family Environment," Working Papers 2005-01, Center for Research in Economics and Statistics.
    3. Francisco Azpitarte, 2011. "Measurement and identification of asset-poor households: a cross-national comparison of Spain and the United Kingdom," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(1), pages 87-110, March.
    4. Angelika Tölke, 2004. "Die Bedeutung von Herkunftsfamilie, Berufsbiografie und Partnerschaften für den Übergang zur Ehe und Vaterschaft," MPIDR Working Papers WP-2004-007, Max Planck Institute for Demographic Research, Rostock, Germany.
    5. Natalia Danzer & Victor Lavy, 2018. "Paid Parental Leave and Children's Schooling Outcomes," Economic Journal, Royal Economic Society, vol. 128(608), pages 81-117, February.
    6. Christopoulou, Rebekka & Pantalidou, Maria, 2017. "The parental home as labor market insurance for young Greeks during the crisis," GLO Discussion Paper Series 158, Global Labor Organization (GLO).
    7. Daniele Vignoli & Anna Matysiak & Marta Styrc & Valentina Tocchioni, 2018. "The positive impact of women’s employment on divorce: Context, selection, or anticipation?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 38(37), pages 1059-1110.
    8. Vladislava Stankuniene & Aiva Jasilioniene, 2008. "Lithuania: Fertility decline and its determinants," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 19(20), pages 705-742.
    9. Cobb-Clark, Deborah A., 2008. "Leaving Home: What Economics Has to Say about the Living Arrangements of Young Australians," IZA Discussion Papers 3309, Institute of Labor Economics (IZA).
    10. Nicoletta Balbo & Francesco C. Billari & Melinda Mills, 2013. "Fertility in Advanced Societies: A Review of Research," European Journal of Population, Springer;European Association for Population Studies, vol. 29(1), pages 1-38, February.
    11. Ann-Zofie Duvander & Trude Lappegård & Synøve N. Andersen & Ólöf Garðarsdóttir & Gerda Neyer & Ida Viklund, 2019. "Parental leave policies and continued childbearing in Iceland, Norway, and Sweden," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 40(51), pages 1501-1528.
    12. Gunnar Andersson & Michaela R. Kreyenfeld & Tatjana Mika, 2009. "Welfare state context, female earnings and childbearing," MPIDR Working Papers WP-2009-026, Max Planck Institute for Demographic Research, Rostock, Germany.
    13. Reich, Nora, 2008. "Das Bundeselterngeld- und Elternzeitgesetz in Deutschland: Analyse potenzieller Effekte auf Geburtenzahl und Fertilitätsstruktur," HWWI Policy Papers 1-10, Hamburg Institute of International Economics (HWWI).
    14. Effrosyni Adamopoulou & Ezgi Kaya, 2018. "Young Adults Living with their Parents and the Influence of Peers," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(3), pages 689-713, June.
    15. Francisco Azpitarte, 2008. "Measurement and Identification of Asset-Poor Households: A Cross-National Comparison of Spain and the United Kingdom," Working Papers 105, ECINEQ, Society for the Study of Economic Inequality.
    16. Helmut Rainer & Geethanjali Selvaretnam & David Ulph, 2011. "Assisted reproductive technologies (ART) in a model of fertility choice," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(3), pages 1101-1132, July.
    17. Michaela Kreyenfeld, 2004. "Fertility Decisions in the FRG and GDR: An Analysis with Data from the German Fertility and Family Survey," Demographic Research Special Collections, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 3(11), pages 275-318.
    18. Natalia Danzer & Victor Lavy, 2013. "Parental Leave and Children's Schooling Outcomes: Quasi-Experimental Evidence from a Large Parental Leave Reform," NBER Working Papers 19452, National Bureau of Economic Research, Inc.
    19. Adamopoulou, Effrosyni, 2016. "Living Arrangements of the Youth: Determinants and Gender Differences/Patrones de convivencia de los jóvenes: Determinantes y diferencias por sexos," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 34, pages 35-44, Enero.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lis:liswps:456. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/lisprlu.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piotr Paradowski (email available below). General contact details of provider: https://edirc.repec.org/data/lisprlu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.