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Adapting to Circumstances: The Evolution of Work, School, and Living Arrangements Among North American Youth

Author

Listed:
  • David Card

    (Princeton University and NBER)

  • Thomas Lemieux

    (Universite de Montreal, CIRANO, and NBER)

Abstract

We use comparable micro data sets for the U.S. and Canada to study the responses of young workers to the extemal labor market forces that have affected the two countries over the past 25 years. We find that young workers adjust to changes in labor market opportunities through a variety of mechanisms, including changes in living arrangements, changes in school enrollment, and changes in work effort. In particular, we find that poor labor market conditions in Canada explain why the fraction of youth living with their parents has increased in Canada relative to the U.S. recently. Paradoxically, this move back home also explains why the relative position of Canadian youth in the distribution of family income did not deteriorate as fast as in the U.S.

Suggested Citation

  • 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..
    • Handle: RePEc:pri:indrel:386
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    JEL classification:

    • E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other

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