IDEAS home Printed from https://ideas.repec.org/a/kap/jfamec/v40y2019i1d10.1007_s10834-018-9588-1.html
   My bibliography  Save this article

Sharing or Limiting the Wealth? Coresidence, Parental Support, and Wealth Outcomes in Canada

Author

Listed:
  • Michelle Maroto

    (University of Alberta)

Abstract

This paper examines the relationship between coresidence with adult children, wealth, and economic security using data from the 1999–2012 Canadian Survey of Financial Security (SFS). The results, obtained via propensity score matching and linear regression, show that coresidence with and parental support for adult children is negatively associated with non-home assets and positively associated with debt levels among Canadian households. Further analyses suggest that these relationships stem from differences in financial assets, retirement savings, student loan debt, and credit card balances. By linking theories of economic insecurity, social capital, and life course studies, this study demonstrates how changing trajectories among young adults and financial hardship can influence broader household resources and stability.

Suggested Citation

  • Michelle Maroto, 2019. "Sharing or Limiting the Wealth? Coresidence, Parental Support, and Wealth Outcomes in Canada," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 102-116, March.
    • Handle: RePEc:kap:jfamec:v:40:y:2019:i:1:d:10.1007_s10834-018-9588-1
    DOI: 10.1007/s10834-018-9588-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10834-018-9588-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10834-018-9588-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joan Kahn & Frances Goldscheider & Javier García-Manglano, 2013. "Growing Parental Economic Power in Parent–Adult Child Households: Coresidence and Financial Dependency in the United States, 1960–2010," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1449-1475, August.
    2. Jacob S. Hacker & Gregory A. Huber & Austin Nichols & Philipp Rehm & Mark Schlesinger & Rob Valletta & Stuart Craig, 2014. "The Economic Security Index: A New Measure for Research and Policy Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 5-32, May.
    3. Philipp M. Lersch, 2017. "The Marriage Wealth Premium Revisited: Gender Disparities and Within-Individual Changes in Personal Wealth in Germany," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 961-983, June.
    4. Annamaria Lusardi & Daniel Schneider & Peter Tufano, 2011. "Financially Fragile Households: Evidence and Implications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 83-150.
    5. repec:bla:revinw:v:60:y:2014:i::p:s5-s32 is not listed on IDEAS
    6. Sabino Kornrich & Frank Furstenberg, 2013. "Investing in Children: Changes in Parental Spending on Children, 1972–2007," Demography, Springer;Population Association of America (PAA), vol. 50(1), pages 1-23, February.
    7. repec:bla:revinw:v:60:y:2014:i::p:s53-s76 is not listed on IDEAS
    8. Nicole Fortin & David A. Green & Thomas Lemieux & Kevin Milligan & W. Craig Riddell, 2012. "Canadian Inequality: Recent Developments and Policy Options," Canadian Public Policy, University of Toronto Press, vol. 38(2), pages 121-145, June.
    9. Michelle Maroto, 2016. "Fifteen Years of Wealth Disparities in Canada: New Trends or Simply the Status Quo?," Canadian Public Policy, University of Toronto Press, vol. 42(2), pages 152-167, June.
    10. Matthew Brzozowski & Martin Gervais & Paul Klein & Michio Suzuki, 2010. "Consumption, Income, and Wealth Inequality in Canada," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 52-75, January.
    11. Emily E. Wiemers, 2014. "The Effect of Unemployment on Household Composition and Doubling Up," Working Papers 2014_05, University of Massachusetts Boston, Economics Department.
    12. Keister,Lisa A., 2000. "Wealth in America," Cambridge Books, Cambridge University Press, number 9780521627511, January.
    13. Keister,Lisa A., 2000. "Wealth in America," Cambridge Books, Cambridge University Press, number 9780521621687, January.
    14. Lars Osberg & Andrew Sharpe, 2014. "Measuring Economic Insecurity in Rich and Poor Nations," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 53-76, May.
    15. Ho, Daniel E. & Imai, Kosuke & King, Gary & Stuart, Elizabeth A., 2007. "Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal Inference," Political Analysis, Cambridge University Press, vol. 15(3), pages 199-236, July.
    16. Emily Wiemers, 2014. "The Effect of Unemployment on Household Composition and Doubling Up," Demography, Springer;Population Association of America (PAA), vol. 51(6), pages 2155-2178, December.
    17. Ho, Daniel & Imai, Kosuke & King, Gary & Stuart, Elizabeth A., 2011. "MatchIt: Nonparametric Preprocessing for Parametric Causal Inference," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 42(i08).
    18. Bonnie-Jeanne MacDonald & Kevin D. Moore & He Chen & Robert L. Brown, 2011. "The Canadian National Retirement Risk Index: Employing Statistics Canada's LifePaths to Measure the Financial Security of Future Canadian Seniors," Canadian Public Policy, University of Toronto Press, vol. 37(s1), pages 73-94, February.
    19. Michelle Maroto & Laura Aylsworth, 2017. "Assessing the Relationship Between Gender, Household Structure, and Net Worth in the United States," Journal of Family and Economic Issues, Springer, vol. 38(4), pages 556-571, December.
    20. Matthijs Kalmijn, 2013. "The Educational Gradient in Marriage: A Comparison of 25 European Countries," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1499-1520, August.
    21. Natasha Pilkauskas & Irwin Garfinkel & Sara McLanahan, 2014. "The Prevalence and Economic Value of Doubling Up," Demography, Springer;Population Association of America (PAA), vol. 51(5), pages 1667-1676, October.
    22. Grinstein-Weiss, Michal & Hun Yeo, Yeong & Zhan, Min & Charles, Pajarita, 2008. "Asset holding and net worth among households with children: Differences by household type," Children and Youth Services Review, Elsevier, vol. 30(1), pages 62-78, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohd Shahid Azim Mohd Saufi & Ahmad Khilmy Abdul Rahim & Mohammad Amir Wan Harun & Ahmad Harith Ashrofie Hanafi & Norhasyikin Rozali, 2024. "Marketing Strategies as a Catalyst for Community Involvement in Educational Waqf," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 849-856, September.
    2. Maude Pugliese & Céline Le Bourdais & Shelley Clark, 2021. "Credit Card Debt and the Provision of Financial Support to Kin in the US," Journal of Family and Economic Issues, Springer, vol. 42(4), pages 616-632, December.
    3. Suzanne Bartholomae & Jonathan J. Fox, 2021. "A Decade Review of Research on College Student Financial Behavior and Well-Being," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 154-177, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michelle Maroto & Laura Aylsworth, 2017. "Assessing the Relationship Between Gender, Household Structure, and Net Worth in the United States," Journal of Family and Economic Issues, Springer, vol. 38(4), pages 556-571, December.
    2. Michelle Maroto, 2018. "Saving, Sharing, or Spending? The Wealth Consequences of Raising Children," Demography, Springer;Population Association of America (PAA), vol. 55(6), pages 2257-2282, December.
    3. Matthew Painter & Jonathan Vespa, 2012. "The Role of Cohabitation in Asset and Debt Accumulation During Marriage," Journal of Family and Economic Issues, Springer, vol. 33(4), pages 491-506, December.
    4. Adriana M. Reyes, 2022. "Race and Ethnic Differences in Financial Dependency of Coresident Young Adults During Economic Recessions and Over Time," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 51-65, March.
    5. Adrianne Frech & Matthew Painter & Jonathan Vespa, 2017. "Marital Biography and Mothers’ Wealth," Journal of Family and Economic Issues, Springer, vol. 38(2), pages 279-292, June.
    6. Julie Zissimopoulos & Johanna Thunell & Stipica Mudrazija, 2020. "Parental Income and Wealth Loss and Transfers to Their Young Adult Children," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 316-331, June.
    7. Hope Harvey, 2020. "Cumulative Effects of Doubling Up in Childhood on Young Adult Outcomes," Demography, Springer;Population Association of America (PAA), vol. 57(2), pages 501-528, April.
    8. Sam Norris & Krishna Pendakur, 2015. "Consumption inequality in Canada, 1997 to 2009," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(2), pages 773-792, May.
    9. Pedro R. D. Bom & Aitor Goti, 2018. "Public Capital and the Labor Income Share," Sustainability, MDPI, vol. 10(11), pages 1-17, October.
    10. Albanesi, Stefania & Gihleb, Rania & Zhang, Ning, 2022. "Boomerang College Kids: Unemployment, Job Mismatch and Coresidence," IZA Discussion Papers 15507, Institute of Labor Economics (IZA).
    11. Chervier, Colas & Le Velly, Gwenolé & Ezzine-de-Blas, Driss, 2019. "When the Implementation of Payments for Biodiversity Conservation Leads to Motivation Crowding-out: A Case Study From the Cardamoms Forests, Cambodia," Ecological Economics, Elsevier, vol. 156(C), pages 499-510.
    12. Meta Brown & Andrew F. Haughwout & Donghoon Lee & Wilbert Van der Klaauw, 2011. "Do we know what we owe? A comparison of borrower- and lender-reported consumer debt," Staff Reports 523, Federal Reserve Bank of New York.
    13. Paula Almeida & Eunice Ramos Lopes & Celio Goncalo Marques & Jorge Simoes & Fatima Pedro, 2017. "The dynamization of Higher Education Institutions for the creation of Tourism Companies in Portugal," Tourism Research Institute, Journal of Tourism Research, vol. 17(1), pages 106-118, June.
    14. Mansaray, Alhassan & Coleman, Simeon & Ataullah, Ali & Sirichand, Kavita, 2021. "Residual government ownership in public-private partnership projects," Journal of Government and Economics, Elsevier, vol. 4(C).
    15. Guarin, Angela & Costanzo, Molly, 2020. "Noncustodial fathers’ financial contributions to children in three-generation households," Children and Youth Services Review, Elsevier, vol. 119(C).
    16. Torres, Jacqueline M. & Yahirun, Jenjira J. & Sheehan, Connor & Ma, Mingming & Sáenz, Joseph, 2021. "Adult child socio-economic status disadvantage and cognitive decline among older parents in Mexico," Social Science & Medicine, Elsevier, vol. 279(C).
    17. Wim Naudé, 2007. "Peace, Prosperity, and Pro-Growth Entrepreneurship," WIDER Working Paper Series DP2007-02, World Institute for Development Economic Research (UNU-WIDER).
    18. Gatskova, Kseniia & Kozlov, Vladimir, 2019. "Doubling Up or Moving Out? The Effect of International Labour Migration on Household Size," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 58(2), pages 162-179.
    19. Tackie, Nii O. & Aboagye, Judith N. & Johnson, Gwendolyn J. & Braxton, Millicent & Hunt-Haralson, LaTanya & Wall, Gertrude D., 2013. "The Impact Of Selected Socioeconomic Factors On Asset Building In Rural Communities," Professional Agricultural Workers Journal (PAWJ), Professional Agricultural Workers Conference, vol. 1(1), pages 1-15.
    20. Lusi Liao & Sasiwimon Warunsiri Paweenawat, 2022. "Alternative boomerang kids, intergenerational co-residence, and maternal labor supply," Review of Economics of the Household, Springer, vol. 20(2), pages 609-634, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jfamec:v:40:y:2019:i:1:d:10.1007_s10834-018-9588-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.