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The Impact of Employment on Parental Coresidence

Research paper by Gary V. Engelhardt, Michael D. Eriksen, Nadia Greenhalgh‐Stanley

Indexed on: 09 Mar '16Published on: 02 Mar '16Published in: Real Estate Economics



Abstract

We examine the extent to which parents use housing and shared living arrangements as a form of risk‐sharing for their adult children, using detailed data on children and parents in the Health and Retirement Study for 1998–2012. On average, a young man moving from full‐time to nonemployment raises the likelihood of coresiding with a parent by 1.5 percentage points; moving from full‐time employment to being part‐time employed raises the likelihood of coresiding with a parent by 2 percentage points. The implied elasticity of parental coresidence with respect to the son's income is ‐1.1; for daughters, the elasticity is ‐0.5.