Household Formation Over Time: Evidence from Two Cohorts of Young Adults

34 Pages Posted: 9 Dec 2016  

Daniel Cooper

Federal Reserve Bank of Boston

María José Luengo‐Prado

Federal Reserve Banks - Federal Reserve Bank of Boston

Multiple version iconThere are 2 versions of this paper

Date Written: 2016-11-15

Abstract

This paper analyzes household formation in the United States using data from two cohorts of the national Longitudinal Survey of Youth (NLSY) — the 1979 cohort and the 1997 cohort. The analysis focuses on how various demographic and economic factors impact household formation both within cohorts and over time across cohorts. The results show that there are substantial differences over time in the share of young adults living with their parents. Differences in housing costs and business-cycle conditions can explain up to 70 percent of the difference in household-formation rates across cohorts. Shifting attitudes toward co-habitation with parents also play a role.

JEL Classification: D10, J11, R20

Suggested Citation

Cooper, Daniel and Luengo‐Prado, María José, Household Formation Over Time: Evidence from Two Cohorts of Young Adults (2016-11-15). FRB of Boston Working Paper No. 16-17. Available at SSRN: https://ssrn.com/abstract=2883054

Daniel H. Cooper (Contact Author)

Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States
617-973-4220 (Phone)

Maria Jose Luengo-Prado

Federal Reserve Banks - Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States

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