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

67 Pages Posted: 10 Jul 2000 Last revised: 15 Oct 2022

See all articles by David Card

David Card

University of California, Berkeley - Department of Economics; Institute for the Study of Labor (IZA); National Bureau of Economic Research (NBER)

Thomas Lemieux

University of British Columbia (UBC) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: August 1997

Abstract

We use comparable micro data sets for the U.S. and Canada to study the responses of young workers to the external 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

Card, David E. and Lemieux, Thomas, Adapting to Circumstances: The Evolution of Work, School, and Living Arrangements Among North American Youth (August 1997). NBER Working Paper No. w6142, Available at SSRN: https://ssrn.com/abstract=225905

David E. Card (Contact Author)

University of California, Berkeley - Department of Economics ( email )

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Thomas Lemieux

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