Proximity to parents correlated with lower earnings, but better rebounds

Madison Rexroat

American millennials have become less mobile than previous generations, with 1.5 percent moving out of their home state in 2016. Earnings are often determined in part by where one lives, so the trend away from mobility could greatly affect an individual’s financial state.

A new study found that people who live in different neighborhoods than their parents tend to be younger, more educated, and earn more than those who live close to their parents.

Although those who live away from their parents earn more on average, living near the parents can prove beneficial for those who lose a job. The study found that those who live closer to their parents are better able to bounce back from a job loss. Potential justifications include parents providing food, housing, and child care for their adult children who have lost a job, as well as a better social network to look for new jobs.

To read the full report in The Atlantic, click here.