When the Kids Live at Home: Coresidence, Parental Assets, and Economic Insecurity

Abstract

Abstract This study uses National Longitudinal Survey of Youth 1979 cohort data from 1994 through 2012 ( N = 16,108 person‐years, 4,671 individuals) to investigate how coresidence with adult children influences asset levels among parents. It applies hybrid mixed effects regression models that partition between‐ and within‐person variation to estimate parental savings and financial assets over time and across different households. The results suggest that coresidence with adult children led to decreases in parental assets and savings. In the years in which their children lived at home, parents held 24% less in financial assets and 23% less in savings when compared with the years when adult children were not present. By expanding previous research that shows a relationship between increasing economic insecurity, limited wealth, and the rise in coresidence among young adults, this study also offers broader implications for the interconnectivity of financial hardship across generations.