Job loss can have long-term effects on future earnings. But living close by parents may mitigate this impact for young adults. Analyzing PSID data, researchers Patrick Coate, Pawel Krolikowski, and Mike Zabek found that adults ages 25-35 who had a job loss and lived near their parents earned about the same as a control group who did not suffer job loss after 5 years. But their counterparts living further from their parents had large earnings declines persisting for 10 years.

More about PSC trainee Zabek and former PSC post-docs Coate and Krolikowski find earnings recovery after job loss faster for young adults living near their parents >