Youth Living Arrangements, Economic Independence, and the Role of Labor Market Changes: A Cohort Analysis from the Early 1970s to the Late 1980s
Between the late 1960s and early 1990s, young workers experienced declining average real wages and increasing labor market inequality. High-skilled youths—those with a college degree—fare better in this new economy relative to youths with few skills and little formal education. This paper studies two separate, but related, indirect effects of this labor market deterioration: changes in living arrangements and changes in economic independence, the ability to financially support oneself and dependents. We find that over this period, youths tended to shift away from living arrangements with significant financial responsibility, such as living with a spouse and children, and toward arrangements with less responsibility, such as remaining at home with one’s parents or living alone. This shift is especially pronounced for low-skilled youths, those most adversely affected by the labor market deterioration. These changes in living arrangements tended to increase the economic independence of youths relative to their loss in economic independence were they unable to alter these living arrangements.
|Date of creation:|
|Date of revision:|
|Contact details of provider:|| Postal: 3412 Social Science Building, 1180 Observatory Drive, Madison, WI 53706|
Phone: (608) 262-6358
Fax: (608) 265-3119
Web page: http://www.ssc.wisc.edu/irp/dp/dplist.htm
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Card & Thomas Lemieux, 2000.
"Adapting to Circumstances (The Evolution of Work, School,and Living Arrangements among North American Youth),"
in: Youth Employment and Joblessness in Advanced Countries, pages 171-214
National Bureau of Economic Research, Inc.
- 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..
- David Card & Thomas Lemieux, 1997. "Adapting to Circumstances: The Evolution of Work, School, and Living Arrangements Among North American Youth," NBER Working Papers 6142, National Bureau of Economic Research, Inc.
- Richard B. Freeman, 1990. "Employment and Earnings of Disadvantaged Young Men in a Labor Shortage Economy," NBER Working Papers 3444, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:wop:wispod:1201-99. 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: (Thomas Krichel)
If references are entirely missing, you can add them using this form.