Is Back to the Nest a Good Decision? The Effect of Returning to Parental Home on the Individual Economic Outcomes Among Young Adults in the US

22 Pages Posted: 11 Jan 2022

Abstract

Young adults who achieved independent living often go back to their parental homes because they cannot afford to maintain financial independence. While much attention has been paid to the factors related to giving up independent living, the lives of young people after returning to parental homes are not well known. This study examines the economic outcomes of young people who have returned to their parents’ home, using data from National Longitudinal Survey of Youth 1997 Cohort (NLSY 97). The economic outcomes of boomerang movers did not improve compared to the period of independent living, and the income gap with young people who remained independent widened. However, it’s not a bad choice in the short term if the living expenses that boomerang movers save by staying at their parents' homes exceed the income gap. The residential movement of young people who make boomerang moves has an impact on their income, but this effect is short-lived. Going back to a parental house changes the region and urban form significantly, and movement of urban form from the central city to the suburban and from the suburban to out of the MSA has a negative impact on income. Findings from the study suggest implications.

Keywords: living arrangements, boomeranging, economic outcomes, young adults

Suggested Citation

Choi, Seungbee, Is Back to the Nest a Good Decision? The Effect of Returning to Parental Home on the Individual Economic Outcomes Among Young Adults in the US. Available at SSRN: https://ssrn.com/abstract=4004701 or http://dx.doi.org/10.2139/ssrn.4004701

Seungbee Choi (Contact Author)

Gachon University ( email )

1342 Seongnam-daero, Sujeong-gu, Seongnam-si
Seongnam, Gyeinggi-do
Korea, Republic of (South Korea)

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