Economic independence from parental support: a critical juncture in the transition to adulthood

Ramina Sotoudeh , Yale University
Ginevra Floridi, University of Edinburgh

The transition to adulthood is a critical stage of life that involves becoming independent from parents. Economic independence is defined here as having moved out of the parental home and not receiving essential or regular financial support from parents. Besides its importance from a macroeconomic standpoint, economic independence also interacts with other life milestones, such as employment, union formation, and childbearing, with important social and demographic consequences. Over the past three decades, economic crises and increased costs of living have hindered the economic independence of young adults from their parents. However, little is known about the determinants and consequences of delayed economic independence for young adults’ life trajectories. Bringing together literatures on the transition to adulthood and the intergenerational transmission of resources, we explore the conditions under which young adults achieve economic independence from their families. Using a combination of sequence analysis and within-family designs, we explore the relative importance of family and individual factors in determining 1) the initial age at which independence is achieved, 2) transitions in and out of a state of independence and its overall stability, and 3) the ordering of independence vis-à-vis other life course transitions (i.e. whether independence from parental support precede other transitions such as first stable employment, marriage, and childrearing).

See extended abstract

 Presented in Session 66. Transition to Adulthood, and Beyond