Moving Back Home: Insurance against Labor Market Risk
By Greg Kaplan. Journal of Political Economy, 2012
296 citations recorded by the source corpus.
This paper demonstrates that the option to move in and out of the parental home is a valuable insurance channel against labor market risk, which facilitates the pursuit of jobs with the potential for high earnings growth. Using monthly panel data, I document an empirical relationship among coresidence, individual labor market events, and subsequent earnings growth. I estimate the parameters of a dynamic game between youths and parents to show that the option to live at home can account for features of aggregate data for low-skilled young workers: small consumption responses to shocks, high labor elasticities, and low savings rates.
Subfields: Accounting, Economics and Econometrics, Gender Studies
View Paper: https://www.semanticscholar.org/paper/5ddcf244f7d3b21c7e54fec1cc2dd1612049bbd6
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Citations in the corpus
- Home-leaving decisions of daughters and sons (2010, unknown): “The econometric specification of the coresidence decision rule is assumed to be a quasi-reduced form representation of the solution to the individual child’s optimization 3For an analysis of this phenomenon in the US see De Vanzo and Frances K. Goldscheider (1990), and Kaplan (2009).”
- Young Adults Living with Their Parents and the Influence of Peers (2018, background): “[42] Kaplan, G.”
- Families in Macroeconomics (2016, unknown): “A common argument in favor of cooperative bargaining is that marriage is usually a sustained long-term relationship, which suggests that the spouses should be able to avoid major inefficiencies. However, while the majority of recent work in family economics uses a cooperative approach, other authors”