Transition Into Adulthood: The Impact of the Great Recession in Schooling and Financial Choices of Young Adults

Elsa Fontainha , ISEG University of LIsbon

The present research studies the impact the Great Recession (GR), on the education and financial choices of the young adults interviewed for Transition into Adulthood PSID Supplement TA - Panel Study of Income Dynamics. The study considers the effect of crisis on the ownership of both financial and real assets (stocks, savings, bonds and vehicles), as well as on college enrollment and change in educational plans. The empirical analysis is uses panel data (2005-2013). Results indicate that the GR impacted negatively the ownership of stocks and vehicles. By contrast, it had a positive impact on college enrollment while. The changes in educational plans due to GR are strongly and negatively predicted by the total assets ownership. Young adults who are white are more likely to own stocks, bonds and vehicles. The support received from parents and for tuition fees are positive and significant predictors of change in educational plans.

See paper

 Presented in Session 105. Short- and Long-Run Effects of Unemployment on Workers and Their Children