Effects of entering adulthood during a recession
- Publisher: Bonn: Institute for the Study of Labor (IZA)
D14 | E24 | J13 | young adults | net worth | home ownership | unemployment | income | parental co-residence | Great Recession
Current cohorts of young adults entered adulthood during an international labor and housing market crisis of a severity not experienced since the Great Depression. Concerns have arisen over the impacts on young adults’ employment, income, wealth, and living arrangements, and about whether these young adults constitute a “scarred generation” that will suffer permanent contractions in financial well-being. If true, knowing the mechanisms through which young adults’ finances have been affected has important implications for policy measures that could improve the financial well-being of today’s young adults in the present and future.