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Media | Policymakers | Researchers
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How Does the Economy Affect the Transition?
Introduction: The Price of Independence Sheldon Danziger and Cecelia Rouse review the changing economic conditions facing young adults today, from the changing workforce to the costs of college and housing and more. Their overview prefaces the 11 chapters of the forthcoming book, The Price of Independence.
Labor Market Experiences and the Transition to Adulthood Carolyn Hill and Harry Holzer, in their chapter of The Price of Independence, find that the overall effect of declining wages and job instability on the transition to adulthood is relatively small, and its importance has not changed over time. Personal attitudes and behaviors also matter, but explain very little of the trends over time. To Have and to Hold: An Analysis of Young Adult Debt On first glance the findings that about eight in ten young adults carry debt and that the average debt is greater than the typical U.S. household might seem worrisome. However, the bulk of it is in mortgage debt which is generally considered a good economic investment, and is what economists argue the credit market is designed to facilitate. Moreover, Ngina S. Chiteji, in her chapter of The Price of Independence, shows that taking on debt is something that young adults have always done, and today's young adults hold debt similar to that for the young adults of the 1960s and 1980s. She also points out that although there are a few individuals with very high debt that pull the average up, the typical young adult carries a much more moderate debt load. Is the Company Man an Anachronism? Trends in Long Term Employment, 1973-2005 In his chapter of The Price of Independence, Henry Farber examines changes in the incidence of long-term employment in the United States between 1973 and 2005. He finds that young people today can expect more churn in their careers and shorter tenures with their employers. The decline in tenure is more pronounced for men; women’s tenures started below men’s and have remained relatively constant throughout the time period. He finds that shifts in the nature of jobs in the U.S., an increase in college educated workers, and increased immigration have all contributed to the trend. Young Adults Leaving the Nest: The Role of Housing and Transportation Costs In his chapter of the forthcoming book The Price of Independence, Aaron Yelowitz, investigates the degree to which changes in the costs of housing and transportation between 1980 and 2000 correlate with young people (aged 18 to 34) moving out of their parents’ homes and into their own houses and apartments. He finds, perhaps surprisingly, that increases in housing and transportation costs accounts for only about 15% of the increase in young adults living at home. Growing Up in the Big City: The
Transitions to Adulthood in New York These excerpts from a chapter in a forthcoming Network book focus on the ways in which the high cost and low availability of housing in New York City affects the transition to adulthood. How do the high costs of housing and the tendency to remain living with family of origin affect the sense of independence and maturity among young people? How does the desire to live independently affect the other transitions to adulthood, such as marriage, completing an education, and finding full-time work? Similarly, what does the diversity of immigrant, racial, and ethnic backgrounds in New York mean for young people as they enter adulthood?
What Money Can Buy: The Relationship between Marriage and Home Ownership in the United States Some have argued that marriage is being delayed—and even forgone—because young adults cannot afford the material aspirations that are considered necessary for this life transition. In this paper, Mary Elizabeth Hughes examines the connection between marriage and homeownership, using homeownership as a measure of material aspirations and economic wherewithal. Results suggest that homeownership is, in fact, a key part of the family formation process. Economic Conditions and the Living Arrangements of Young Adults To what extent do regional changes in labor demand and wages leave young adults “priced-out” of the market for independence? Jordon Matsudaira, in his chapter in The Price of Independence, finds quite varied trends regionally in the changing tendency of youth to live at home longer. He also finds that young adults are more likely to live in their parental home when the labor market is in decline. The effects of the business cycle are more pronounced for adults in their early twenties rather than their late 20s, and they are more pronounced for men than women. Family Background and Children’s Transition to Adulthood over Time The authors of this chapter in The Price of Independence show how the transition to adulhood varies by parental family income and education, and how this influence has changed over time. Blurring the Boundary: Changes in the Transition from College to Adulthood The face of college students is changing. Not only are mroe women in the classroom, but more students are juggling work and family, or beginning their college career later. Maria Fitzpatrick and Sarah Turner, in their chapter in The Price of Independence, examine how economic conditions and other factors have affected this changing face of college. Does College Still Pay Lisa Barrow and Network member Cecilia Elena Rouse show in The Economists’ Voice that college indeed still pays, boosting earnings considerably compared to those without a college degree. Even after factoring in the rising costs of college and the wages lost while in college, graduates can expect to recoup their investment within 10 year after graduating. It's the gift that keeps on giving.
Early Incarceration and the Transition to Adulthood The escalating rate of incarceration in the last decade has taken its toll on young men, especially young minority men. Steven Raphael, in his chapter in The Price of Independence examines how incarceration affects earnings and wages in early adulthood, as well as marriage and living arrangements. Sticking Around: Delayed Departure from the Parental Nest in Western Europe Looking to Europe, Katherine Newman and Sofya Aptekar, in their chapter in The Price of Independence, find that employment policies that protect older workers at the expense of younger workers make it harder for young adults to move out of their family homes. Housing markets also play a key role. A Cross-National Survey of Trends in the Transition to Economic Independence Although U.S. youth are finding it harder to become economically self-sufficient, European youth are finding it even harder. Lisa Bell, Gary Burtless, Janet Gornick, and Timothy Smeeding, in their chapter in The Price of Independence, show that young men have found it increasingly difficult to become economically independent since the mid-1980s, while women have seen somewhat improved prospects. U.S. young adults have made larger gains overall than their European counterparts. Off to a Good Start? Higher Education versus Single Motherhood Exploring the impact of education and avoiding early parenthood, Gary Sandefur, Jennifer Eggerling-Boeck, and Hyunjoon Park, in their chapter in On the Frontiers of Adulthood, find that family resources and whether one attends a public or private school play a significant role in starting off on the right foot The Role of Social Class and Early Outlooks in Positive Transitions to Adulthood D. Wayne Osgood et al., in their chapter in On the Frontiers of Adulthood, find that family social class, as well as extended education and delayed family formation, highly influence youths’ varied paths into adulthood, but maintain that social class is not destiny. Is It Getting Harder to Get Ahead? Mary Corcoran and Jordan Matsudaira, in their chapter in On the Frontiers of Adulthood, examine the economic outcomes in early adulthood for those born in the 1950s and the 1960s, finding that race-based inequality increased while gender-based inequality decreased and that high-income families can more easily pass along economic advantage to their children than poor youth can escape poverty. Family Support during the Transition to Adulthood The amount of material support youth between the ages of 18 and 34 receive from their parents has increased substantially over the last 30 years, find Robert Schoeni and Karen Ross in their chapter in On the Frontiers of Adulthood. The Dynamics of Assimilation In their study of the new generation of Americans reared in immigrant families, John Mollenkopf, Mary C. Waters, Jennifer Holdaway, and Philip Kasinitz find that most, but by no means all, such youth reproduced the initial advantage or disadvantage of their parents. Data Brief: Earnings by Education for Young Workers, 1975 & 2002
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