After moving back to the nest: The heterogeneous effect of returning to parental home on the employment outcomes by income group

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 identifying factors contributing to giving up independent living, the lives of young people after returning to parental homes have yet to be understood. This study examines the employment outcomes of young people who have returned to their parents' homes, using data from 2003 to 2011 waves of the National Longitudinal Survey of Youth 1997 Cohort (NLSY 97). The results of the analysis show the heterogeneous effect of the boomerang move. Boomerang movers in the lowest income groups have improved employment outcomes, but not the other groups. However, the employment outcomes of boomerang movers are still lower than those of young people who remain independent across all income groups. Changes in residential location affect income, and the impact varies by income group. A residential shift away from the central city reduces the income of the middle income group. While region change is positively related to income for the lowest income group, it negatively affects the other groups. Findings from the study suggest several policy implications.